Whitehorse Finance, Inc. · NASDAQ:WHF
Whitehorse Finance — Q2 2019 Earnings Presentation
16 slides from Whitehorse Finance's earnings presentation, Aug 7, 2019
Slide 1: Earnings Presentation Quarter Ended June 30, 2019
Earnings Presentation Quarter Ended June 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: $288.1MM (1 ) NAV / Share: $15.38 Portfolio Fair Value: $534.8MM Current Dividend Yield: 10.1% (1) ; consistent quarterly dividends of $0.355 per share s
Slide 4: Overview of WhiteHorse Finance, Inc.
Overview of WhiteHorse Finance, Inc. 3 Portfolio at Fair Value ($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 June 30, 2019 unless otherwise noted. (1) As of June 30, 2019. (2) Reflects life - to - date since IPO, and may exclude follow - on transactions. (3) Across 67 investments. (4) Reflects weighted average effective yield of income - produ
Slide 6: Summary of Quarterly Results
5 Summary of Quarterly Results Fiscal Quarter Highlights ▪ Total investments at fair value increased to $534.8 million in Q2 2019 as compared to $468.4 million in Q1 2019. ▪ The Company made investments in 7 new portfolio companies for gross additions of $71.4 million and funded a small add - on inv
Slide 7: Quarterly Operating Highlights
6 Quarterly Operating Highlights Note: N umbers may not foot due to rounding. (1) Net of fee waivers, if any. (2) Core net investment income is a non - GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it refl
Slide 8: Quarterly Balance Sheet Highlights
7 Quarterly Balance Sheet Highlights Note: Numbers may not foot due to rounding Unaudited Quarterly Financials Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 (USD in MM, expect per share data) Assets Investments at Fair Value 467.7$ 511.4$ 509.6$ 469.6$ 468.4$ 534.8$ Cash and Equivalents (1) 18.6 18.6 26.6 33.
Slide 9: Portfolio Highlights
Portfolio Highlights 8 Note: Not a guarantee of future performance or investment pace. (1) C alculated 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 from 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) % Non Accruals (Based on Fair Value) (1) Note: As of end of each year/quarter presented, unless otherwise noted; pe
Slide 11: Borrower and Industry Diversity
10 Note: As of June 30, 2019, unless otherwise noted; percentages may not add up to 100% due to rounding. (1) Industry classifications based on GICS. Composition by Borrower (Based on Fair Value) Composition by Industry (1) (Based on Fair Value) 100% of WHF loans are senior secured Borrower and Indu
Slide 12: Effective Yield & Dividend Coverage
Effective Yield & Dividend Coverage Debt Portfolio Effective Yield and Borrower Leverage (1) From IPO to June 30, 2019 11 Core NII (2) to Dividend Coverage Covered by $0.01 Covered by $0.02 Missed by $0.01 Covered by $0.01 Missed by $0.00 Covered by $0.04 Covered by $0.00 Covered by $0.00 Covered by
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 June 30, 2019 WHF had $3.58MM of deferred debt issuance costs (2) Gross leverage excluding cash 3 Current Debt Outstanding (as of June 30, 2019) ($ in MM) Commitmen
Slide 14: Appendix
13 Appendix
Slide 15: Origination Footprint (June 30, 2019)
Origination Footprint ( June 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 ▪ Regional fo
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 June 30, 2019 Three tier sourcing platform, generating meaningful investable opportunities for WhiteHorse Finance Over 40 WhiteHorse deal professionals