Whitehorse Finance, Inc. · NASDAQ:WHF
Whitehorse Finance — Investor Presentation (October 2014)
18 slides from Whitehorse Finance's investor presentation, Oct 9, 2014
Slide 1: WhiteHorse Finance, Inc. Investor Presentation October 2014
Investor Presentation October 2014 WhiteHorse Finance, Inc. NASDAQ: WHF
Slide 2: Forward-looking statements
1 References in this presentation to “WHF”, “we”, “us”, “our” and “the Company” refer to WhiteHorse Finance, Inc. Some of the statements in this presentation constitute forward - looking statements, which relate to future events or the Company’s fut ure performance or financial condition. The forwar
Slide 3: WhiteHorse Finance Snapshot
2 WhiteHorse Finance Snapshot Company / Ticker: WhiteHorse Finance, Inc. / NASDAQ: WHF (“ WhiteHorse Finance” or the “Company”) : Current Share Price: $ 14.27 (1 ) : Market Cap: $214MM (1 ) : Price / Book: 0.94x (1)(2) Portfolio Fair Value: $347MM (2 ) : Current Dividend Yield: 10.0% ( 1 ) ; consist
Slide 4: WhiteHorse Finance Overview
3 WhiteHorse Finance Overview Investment Strategy ▪ Generate attractive risk - adjusted returns through debt investments in performing small - cap companies ▪ Primarily target directly originated senior secured loans sourced through H.I.G.’s deal flow network ▪ Opportunistically invest in credits wh
Slide 5: H.I.G. Capital Overview
4 H.I.G. Capital Overview Note: As of June 30, 2014 ▪ Leading global alternative asset manager focused on the small - cap market, defined as companies with $50MM to $350MM of enterprise value − Founded in 1993; over $ 15Bn under management ▪ Differentiated, value - added strategy and deep experience
Slide 6: H.I.G. Capital Platform Overview
5 H.I.G. Capital Platform Overview ▪ Small - Cap Buyouts ▪ Middle Market Buyouts Leveraged Buyouts ▪ Venture Capital ▪ Bio - Tech ▪ Growth Equity Growth Equity ▪ CLOs / Structured Credit ▪ Senior Loan Funds AUM: $ 6.9Bn Real Estate ▪ Opportunistic equity and debt investments across all property type
Slide 7: Small-Cap Market Overview
6 Small - Cap Market Overview Unstructured and Inefficient Market ▪ Sourcing small - cap lending opportunities requires access to an extensive network of relationships in the small - business community (as opposed to the established investment banking sources for larger companies) Specialized Lendin
Slide 8: Self-Originated Small-Cap vs Broadly Syndicated and Secondary Market
7 Self - Originated Small - Cap Broadly Syndicated and Secondary Market Value Add for Investors ▪ Proprietary deals with limited competition, resulting in above market risk - return dynamics ▪ Larger, more liquid investments; competition among a large number of participants often drives down yields
Slide 9: WhiteHorse Finance Portfolio Composition
8 WhiteHorse Finance Portfolio Composition ▪ Self - originated, proprietary transactions sourced through H.I.G.’s deal flow network − “Off market” opportunities primarily to non - sponsored, small - cap companies − Compelling risk - adjusted returns resulting from limited competition Direct Originat
Slide 10: Portfolio Investment Characteristics
Metal & Glass Containers 1% Homefurnishing Retail 1% Cable, Internet, VOIP Communications Services 1% Integrated Telecommunication Services 2% Internet Retail 2% Oil & Gas Exploration & Production 3% Other Diversified Financial Services 3% Aerospace & Defense 3% Electronic Equipment & Instruments 3%
Slide 11: Hypothetical Dividend Coverage Calculation
10 WhiteHorse Finance Hypothetical Dividend Coverage Calculation (1) Net capital invested includes a mix of ( i ) capital invested through undrawn leverage availability and (ii) optimization of the portfolio through divesting Transitory investments and redeploying capital (2) Includes estimated Base
Slide 12: Updates / Developments since December 2012 IPO
11 Updates / Developments since December 2012 IPO IPO/ Financing: ▪ Raised $30MM publicly traded Senior Notes in July 2013 ▪ Extended maturity and lowered interest rate on the Unsecured Term Loan ▪ Extended maturity and reduced borrowing costs on the Senior Credit Facility (1) Investment Portfolio A
Slide 13: Summary Highlights
12 Summary Highlights Leading Small - Cap Market Position ▪ Over 20 years of experience and $15Bn of capital committed primarily across a number of synergistic small - cap strategies Unique Deal Sourcing Infrastructure ▪ Robust origination platform has enabled the Company to deploy over $360MM since
Slide 14: Appendix
Appendix 43 ad EUEPEHORSE
Slide 15: Historical Quarterly Operating Highlights
Historical Quarterly Operating Highlights (USD amounts in millions, except per share data)
Slide 16: Historical Quarterly Balance Sheet Highlights
15 Historical Quarterly Balance Sheet Highlights (USD amounts in millions, except per share data)
Slide 17: Net Leverage Ratio
16 Net Leverage Ratio (1) Net leverage ratio is defined as debt outstanding plus any amounts payable for investments purchased less cash and equivalents (i ncl uding restricted cash) investments sold, divided by total assets. (2) BDC Subset consists of MAIN, MCC, GBDC, SCM, GARS, OFS, MRCC, CPTA, TC
Slide 18: WhiteHorse Finance – Senior Team Bios
17 WhiteHorse Finance – Senior Team Bios Title Years of Experience Highlights John Bolduc ▪ Chairman of the Board ▪ Member of the Investment Committee 24 ▪ Leads H.I.G. Capital’s c redit platform ▪ Previous experience at Bain & Company and Chemed Corporation Jay Carvell ▪ Chief Executive Officer ▪ M
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