Whitehorse Finance, Inc. · NASDAQ:WHF
Whitehorse Finance — Q4 2024 Earnings Presentation
25 slides from Whitehorse Finance's earnings presentation, Mar 7, 2025
Slide 1: WhiteHorse Finance, Inc. Earnings Presentation
WhiteHorse Finance, Inc. Earnings Presentation Quarter Ended December 31, 2024 NASDAQ: WHF (Common Stock) NASDAQ: WHFCL (7.875% Notes due 2028)
Slide 2: Important Information and Forward Looking Statements
Important Information and Forward Looking Statements References in this presentation to “WHF”, “WhiteHorse Finance”, “we”, “us”, “our” and “the Company” refer to WhiteHorse Finance, Inc. This presentation and the information and views included herein do not constitute investment advice, or a recomme
Slide 3: WhiteHorse Finance Snapshot
WhiteHorse Finance Snapshot Company: WhiteHorse Finance, Inc. Equity Ticker: NASDAQ: WHF Market Cap: $244.3MM(1) Credit Rating: Egan-Jones: BBB+ / DBRS: BBB (low) NAV / Share: $12.31(2) Portfolio Fair Value: $642.2MM Current Dividend Yield: 14.7%(1)(3); consistent quarterly dividends at or above $0.
Slide 4: Overview of WhiteHorse Finance, Inc.
Overview of WhiteHorse Finance, Inc. WhiteHorse Finance, Inc. is a publicly listed Business Development Company (“BDC”) that completed its IPO in December 2012 WhiteHorse Finance’s investment activities are managed by H.I.G. WhiteHorse Advisers, LLC (the “Investment Adviser”), an affiliate of H.
Slide 5: Overview of WhiteHorse Finance, Inc. (continued)
Overview of WhiteHorse Finance, Inc. (continued) Investment Strategy Summary Stats: Invested Capital since IPO: $2,737MM(1) Generate attractive risk-adjusted returns in all market conditions by originating and investing in senior secured loans to performing lower middle market companies and levera
Slide 6: Summary of Quarterly Results
Summary of Quarterly Results Q4 Net Investment Income (“NII”) and Q4 Core NII(1) was $8.0 million, or $0.34 per share, which compares with Q3 NII and Q3 Core NII of $9.2 million, or $0.39 per share. Net realized and unrealized losses on investments and foreign currency transactions for Q4 2024 t
Slide 7: Quarterly Operating Highlights
Quarterly Operating Highlights Unaudited Quarterly Financials Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 (USD in MM, expect per share data) Total Investment Income (1) $ 25.6 $ 25.5 $ 23.5 $ 22.9 $ 21.0 Expenses Interest Expense 7.5 7.4 7.1 6.9 6.5 Bas e Management Fees 3.6 3.1 3.1 3.0 2.9 Performance-
Slide 8: Quarterly Balance Sheet Highlights
Quarterly Balance Sheet Highlights Unaudited Quarterly Financials Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 (USD in MM, expect per share data) Assets Investments at Fair Value $ 696.2 $ 697.9 $ 660.0 $ 654.3 $ 642.2 (1) Cash and Equivalents 24.5 20.9 21.8 20.7 27.8 Other Assets 10.1 16.2 21.4 8.6 6.8
Slide 9: Portfolio Highlights
Portfolio Highlights Portfolio Highlights Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 (USD in MM) Portfolio Activity New Investment Commitments $ 65.3 $ 65.2 $ 69.2 $ 60.5 $ 42.0 (1) Gross Fundings 58.6 58.2 58.2 52.9 37.9 (1) Exits and Repayments (65.1) (54.9) (97.1) (46.2) (47.3) Net Fundings / (Repay
Slide 10: Portfolio Highlights
Portfolio Highlights ($ in MM, except per share data) Portfolio Investment Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Total Fair Value of Investments $ 696.2 $ 697.9 $ 660.0 $ 654.3 $ 642.2 Number of Portfolio Investments 116 120 125 129 127 Number of Portfolio Companies 72 71 72 73 71 Average Investme
Slide 11: Portfolio Trends
Portfolio Trends Historical Portfolio Trends % Floating and % Fixed (Based on Fair Value) % Instrument Type (Based on Fair Value) 0.1% 0.2% 0.4% 0.4% 0.9% 1.3% 100% 100.0% 9% 3% 6% 7% 3% 9% 3% 3% 15% 17% 21% 11% 4% 3% 80% 2% 2% 4% 80.0% 1% 39% 60.0% 60% 99.9% 100.0% 100.0% 99.8% 99.6% 99.6% 99.1% 98
Slide 12: Borrower and Industry Diversity
Borrower and Industry Diversity Composition by Borrower (Based on Fair Value) Composition by Industry(1) (Based on Fair Value) STRS JV Sleep OpCo LLC Data Processing & Outsourced Services Air Freight & Logistics Future Payment Technologies, L.P. ABB/Con-cise Optical Group LLC Application Software Sy
Slide 13: Effective Yield & Dividend Coverage
Effective Yield & Dividend Coverage Debt Portfolio Effective Yield and Borrower Leverage(1) From IPO to December 31, 2024 15.5% 14.9% 13.6%13.7%13.7%13.8% 13.1% 13.2%13.4% 13.1% 12.6% 12.5% 12.1%11.8%11.8%11.9%11.9%11.9%12.0%12.0%11.9%11.9% 11.8%11.7% 11.7%11.6%11.8%11.9%11.9% 11.7% 11.1% 11.3%11.4%
Slide 14: Yield & Interest Rate Economic Analysis
Yield & Interest Rate Economic Analysis 16.0% 13.6% 13.7% 13.7% 13.8% 14.0% 13.2% 13.4% 13.1% 12.6% 12.5% 11.4% 13.1% 13.2% 13.2% 13.2% 12.0% 12.9% 12.6% 12.5% 12.1% 12.0% 9.9% 9.6% 9.5% 10.0% 9.3% 9.1% 9.2% 10.8% 9.4% 8.0% 9.1% 9.0% 8.8% 7.2% 7.4% 8.6% 8.8% 7.1% 7.1% 7.1% 7.1% 7.2% 6.8% 6.8% 6.4% 5
Slide 15: Investment Performance Ratings
Investment Performance Ratings Investment Performance Ratings (% of Portfolio at Fair Value) Rating 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 1 6.3% 2.3% 22.2% 15.4% 8.6% 18.3% 14.3% 12.8% 12.5% 11.0% 2 100.0% 92.4% 100.0% 90.3% 87.0% 83.9% 80.1% 83.
Slide 16: Net Asset Value Trends
Net Asset Value Trends Net Asset Value Per Share $18.00 15.56 $16.00 15.43 15.55 15.30 14.81 15.16 15.35 15.23 15.23 15.10 14.21 15.00 $14.00 15.04 13.63 13.98 13.13 14.30 13.33 13.63 $12.00 12.31 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 Net Asset Value If No Special Dividends Were Paid Net Asset Value
Slide 17: NAV Per Share Bridge
NAV Per Share Bridge Note: Numbers may not foot due to rounding. Core net investment income is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company's financial performance excluding
Slide 18: Leverage Migration
Leverage Migration ($ in MM) 09/30/2024 Quarterly Change 12/31/2024 Outstanding Debt: Outstanding Debt: $356.1 ($0.1) $356.0 Driven by paydowns and sales of portfolio investments NAV: NAV: $296.9 ($10.8) $286.1 Driven by net realized & unrealized losses and special distribution Leverage Ratio: Lever
Slide 19: Funding Profile
Funding Profile Current Debt Outstanding (as of December 31, 2024) ($ in MM) Commitment Outstanding(1) Weighted Average Interest Rate Maturity $335.0 S+2.500% Revolving Credit Facility $161.5 2025 (Accordion Feature up to $375) payable quarterly 5.375% 5.375% 2025 Notes $40.0 $40.0 2025 payable semi
Slide 20: Appendix
Appendix fay WHITEHORSE 19 FINANCE
Slide 21: Regional Direct Origination Footprint
Regional Direct Origination Footprint Origination Footprint (as of December 31, 2024) Scope of H.I.G. WhiteHorse market coverage results in consistent investment activity levels regardless of market conditions Dedicated direct lending team of approximately 72 investment and origination professio
Slide 22: STRS JV Key Terms and Funding Profile
STRS JV Key Terms and Funding Profile ($ in MM) WHF and STRS Ohio have committed to provide up to $175 million in subordinated notes and equity to STRS JV, with STRS Ohio providing $60 million and WHF providing $115 million WHF and STRS Ohio share voting control 50%/50% Key Terms Equity owners
Slide 23: STRS JV Borrower and Industry Diversity
STRS JV Borrower and Industry Diversity Composition by Borrower (Based on Fair Value) Composition by Industry(1) (Based on Fair Value) IT Consulting & Other Services Environmental & Facilities Services Source Code Holdings, LLC Marlin DTC-LS Midco 2, LLC Diversified Support Services Technology Hardw
Slide 24: Origination Pipeline Funnel
Origination Pipeline Funnel(1) Three tier sourcing platform, generating meaningful investable opportunities for WhiteHorse Finance 20+ person business development Approximately 70 WhiteHorse deal team seeks opportunities from Deals being sourced by over 500 professionals dedicated to sourcing H.I.G.
Slide 25: Corporate Data
Corporate Data Board of Directors Investment Committee Corporate Executive Officers Research Coverage Corporate Counsel John Bolduc Sami Mnaymneh Stuart Aronson Bryce Rowe Dechert LLP Chairman of the Board Co-Founder, Co-Executive Chairman and Chief Executive Officer B. Riley FBR New York, NY CEO of