Whitehorse Finance, Inc. · NASDAQ:WHF
Whitehorse Finance — Q3 2019 Earnings Presentation
17 slides from Whitehorse Finance's earnings presentation, Nov 7, 2019
Slide 1: Earnings Presentation Quarter Ended September 30, 2019
Earnings Presentation Quarter Ended September 30, 2019 WhiteHorse Finance, Inc. NASDAQ: WHF (Common Stock) NASDAQ: WHFBZ (6.50% Notes due 2025)
Slide 2: Forward Looking Statements
1 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 a n o ffer to enter into any transaction with the Company or a
Slide 3: WhiteHorse Finance Snapshot
2 WhiteHorse Finance Snapshot Company: WhiteHorse Finance, Inc. (“ WhiteHorse Finance” or the “Company”) : Equity Ticker: NASDAQ: WHF Market Cap: $286.6MM (1) NAV / Share: $15.36 Portfolio Fair Value: $527.5MM Current Dividend Yield: 10.2% (1 )(2) ; consistent quarterly dividends of $0.355 per share
Slide 4: Overview of WhiteHorse Finance, Inc.
Overview of WhiteHorse Finance, Inc. 3 Portfolio at Fair Value ($MM) NAV + Cumulative Dividends per share Note: As of December 31 st of each respective year presented, unless otherwise noted. (1) Based on total capital commitments managed by H.I.G. Capital and affiliates (2) Represents number of com
Slide 5: Overview of WhiteHorse Finance, Inc. (continued)
4 Overview of WhiteHorse Finance, Inc. (continued) Note: As of September 30, 2019 unless otherwise noted. (1) As of September 30, 2019. (2) Reflects life - to - date since IPO, and may exclude follow - on transactions and investments in STRS JV made via asset transfers in - kind. (3) Across 63 inves
Slide 6: Summary of Quarterly Results
5 Summary of Quarterly Results Fiscal Quarter Highlights ▪ Total investments at fair value decreased to $527.5 million in Q3 2019 as compared to $534.8 million in Q2 2019. ▪ The Company made investments in 4 new portfolio companies for gross additions of $47.0 million and funded 3 add - on investmen
Slide 7: Quarterly Operating Highlights
6 Quarterly Operating Highlights Note: N umbers may not foot due to rounding. (1) Total investment income includes investment income (e.g., interest and dividends) from investments in STRS JV. (2) Net of fee waivers, if any. (3) Core net investment income is a non - GAAP financial measure. The Compa
Slide 8: Quarterly Balance Sheet Highlights
7 Quarterly Balance Sheet Highlights Note: Numbers may not foot due to rounding Unaudited Quarterly Financials Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 (USD in MM, expect per share data) Assets Investments at Fair Value 511.4$ 509.6$ 469.6$ 468.4$ 534.8$ 527.5$ Cash and Equivalents (1) 18.6 26.6 33.7 36.
Slide 9: Portfolio Highlights
Portfolio Highlights 8 Note: Not a guarantee of future performance or investment pace. (1) Calculated based on funded principal amounts of debt investments. (2) Weighted average effective yield is computed by dividing (a) annualized interest income (including interest income resulting fro m the amor
Slide 10: Portfolio Trends
Portfolio Trends Historical Portfolio Trends 9 % Floating and % Fixed (Based on Fair Value) % Instrument Type (Based on Fair Value) % Sponsored / Non - Sponsored (Based on Fair Value ) ( 1) % Non Accruals (Based on Fair Value ) (2) Note: As of end of each year/quarter presented, unless otherwise not
Slide 11: Borrower and Industry Diversity
10 Note: As of September 30, 2019, unless otherwise noted; percentages may not add up to 100% due to rounding. (1) Does not include investments in STRS JV. Industry classifications based on GICS. Composition by Borrower (Based on Fair Value) Composition by Industry (1) (Based on Fair Value) 100% of
Slide 12: Effective Yield & Dividend Coverage
Effective Yield & Dividend Coverage Debt Portfolio Effective Yield and Borrower Leverage (1) From IPO to September 30, 2019 11 Core NII (2) to Dividend Coverage Note: Amounts may not foot due to rounding. (1) Portfolio leverage is based on investment leverage at inception (2) Core net investment inc
Slide 13: Funding Profile and Current Debt Outstanding
Note: As of end of each quarter presented, unless otherwise noted. Not a guarantee of future performance or investment pace. (1) As of September 30, 2019 WHF had $3.33MM of deferred debt issuance costs (2) Gross leverage excluding cash 3 Current Debt Outstanding (as of September 30, 2019) ($ in MM)
Slide 14: Appendix
Appendix " — EHORSE
Slide 15: Origination Footprint
Origination Footprint ( September 30, 2019) Regional Direct Origination Footprint ▪ Scope of H.I.G. WhiteHorse market coverage results in consistent investment activity levels regardless of market conditions ▪ Dedicated direct lending team of over 40 investment and origination professionals ▪ Region
Slide 16: Origination Pipeline Funnel
Origination Pipeline Funnel (1) 15 Note: Percentages may not add up to 100% due to rounding. (1) Origination Pipeline figures reflect 2014 through September 30, 2019 Three tier sourcing platform, generating meaningful investable opportunities for WhiteHorse Finance Over 40 WhiteHorse deal profession
Slide 17: Corporate Data
16 Corporate Data Board of Directors Investment Committee Corporate Officers Research Coverage Corporate Counsel John Bolduc Sami Mnaymneh Stuart Aronson Tim Hayes Dechert LLP Chairman of the Board Founder and Co - CEO of H.I.G. Capital Chief Executive Officer B. Riley FBR New York, NY Stuart Aronso