Whitehorse Finance, Inc. · NASDAQ:WHF
Whitehorse Finance — Q4 2018 Earnings Presentation
15 slides from Whitehorse Finance's earnings presentation, Mar 6, 2019
Slide 1: WhiteHorse Finance, Inc. Earnings Presentation
WhiteHorse Finance, Inc. Earnings Presentation Quarter Ended December 31, 2018 NASDAQ: WHF (Common Stock) NASDAQ: WHFBZ (6.50% Notes due 2025)
Slide 2: Important Information and Forward Looking Statements
Important Information and Forward Looking Statements References in this presentation to “WHF”, “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 recommendation or an offer to
Slide 3: WhiteHorse Finance Snapshot
WhiteHorse Finance Snapshot Company: WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the “Company”): Equity Ticker: NASDAQ: WHF Market Cap: $280.2MM NAV / Share: $15.35 Portfolio Fair Value: $469.6MM Current Dividend Yield: 10.4%(1); consistent quarterly dividends of $0.355 per share since 2012 IP
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, an affiliate of H.I.G. Capital, LLC, ("H.I.G.
Slide 5: Overview of WhiteHorse Finance, Inc. (continued)
Overview of WhiteHorse Finance, Inc. (continued) Investment Strategy Summary Stats: Invested Capital since IPO: $1,224MM(1) ▪ Generate attractive risk-adjusted return in all market conditions by originating and investing in senior secured loans to performing lower middle market companies and leverag
Slide 6: Summary of Quarterly Results
Summary of Quarterly Results ▪ Total investments at fair value declined by $40.1 million to $469.6 million in Q4 2018 as compared to $509.6 million in Q3 2018, driven by the realization of the Company’s investment in Aretec Group, Inc. (“Aretec”). The total proceeds from this realization totaled $53
Slide 7: Quarterly Operating Highlights
Quarterly Operating Highlights Unaudited Quaterly Financials Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 (USD in MM, expect per share data) Total Investment Income $ 13.9 $ 16.6 $ 14.7 $ 15.3 $ 16.7 Expenses Interest Expenses 2.4 2.6 2.8 3.3 3.0 Base Management Fees 2.4 2.4 2.6 2.6 2.5 Performance-based Incentive
Slide 8: Quarterly Balance Sheet Highlights
Quarterly Balance Sheet Highlights Unaudited Quaterly Financials Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 (USD in MM, expect per share data) Assets Investments at Fair Value $ 440.7 $ 467.7 $ 511.4 $ 509.6 $ 469.6 (1) Cash and Equivalents 38.9 18.6 18.6 26.6 33.7 Other Assets 5.9 6.3 8.5 5.6 10.8 Total Assets
Slide 9: Portfolio Highlights
Portfolio Highlights ($ in MM, except per share amounts) Portfolio Investment Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Total Fair Value of Investments $ 440.7 $ 467.7 $ 511.4 $ 509.6 $ 469.6 Number of Portfolio Investments 43 48 52 49 53 Average Investment Size $ 10.2 $ 9.7 $ 9.8 $ 10.4 $ 8.9 Average
Slide 10: Portfolio Trends
Portfolio Trends Historical Portfolio Trends % Floating and % Fixed (Based on Fair Value) % Instrument Type (Based on Fair Value) 3.9% 2.9% 0.2% 0.1% 0.0% 100.0% 0% 5% 5% 3% 7% 9% 11.6% 21% 80.0% 48% 40% 33% 43% 39% 60.0% 96.1% 97.1% 99.8% 99.9% 100.0% 88.4% 40.0% 77% 55% 60% 52% 52% 52% 20.0% 0.0%
Slide 11: Borrower and Industry Diversity
Borrower and Industry Diversity Composition by Borrower (Based on Fair Value) Composition by Industry(1) (Based on Fair Value) Specialized Finance Broadcasting Sigue Corporation Future Payment Technologies, L.P. Other Diversified Financial Services Leisure Facilities Oasis Crews of California, Inc.
Slide 12: Effective Yield & Dividend Coverage
Effective Yield & Dividend Coverage Debt Portfolio Effective Yield and Borrower Leverage(1) From IPO to December 31, 2018 15.5% 14.9% 13.1% 11.8% 11.9% 11.9% 12.1% 11.9% 11.9% 11.9% 12.0% 12.0% 11.9% 11.9% 11.7% 11.3% 11.4% 11.7% 11.6% 11.8% 11.8% 11.8% 11.1% 10.7% 4.5x 4.1x 3.8x 3.4x 3.4x 3.6x 3.4x
Slide 13: Funding Profile
Funding Profile Current Debt Outstanding (as of December 31, 2018) Weighted Average ($ in MM) Commitment Outstanding(1) Maturity Additional Information Interest Rate $200.0 L+2.75% Amended Nov 2018 for Revolving Credit Facility $115.0 2021 ($235.0 with Accordion) payable quarterly Minimum Utilizatio
Slide 14: Appendix
13 bad WELTTEHORSE
Slide 15: Origination Pipeline Funnel
Origination Pipeline Funnel(1) Three tier sourcing platform, generating meaningful investable opportunities for WhiteHorse Finance 25 person business development Over 41 WhiteHorse deal team seeks opportunities from Deals being sourced by more than professionals dedicated to sourcing H.I.G.’s propri