Whitehorse Finance, Inc. · NASDAQ:WHF
Whitehorse Finance — Investor Presentation (January 2018)
17 slides from Whitehorse Finance's investor presentation, Jan 12, 2018
Slide 1: Investor Presentation January 2018
Investor Presentation January 2018 WhiteHorse Finance, Inc. NASDAQ: WHF (Common Stock) NASDAQ: WHFBL (6.50% Senior Notes due 2020)
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 / Ticker: WhiteHorse Finance, Inc. / NASDAQ: WHF (“WhiteHorse Finance” or the “Company”) : Current Share Price: $13.36 (1) : Market Cap: $274.3M (1 ) : Price / NAV: 0.96x (1 )(2) Portfolio Fair Value: $435.3MM (2 ) : Current Dividend Yield: 10.6% ( 1) ; consiste
Slide 4: H.I.G. WhiteHorse Highlights
3 H.I.G. WhiteHorse Highlights Leading Lower Middle Market Position ▪ H.I.G. brings over 20 years of experience and ~$ 24Bn of capital committed (1) primarily across a number of synergistic lower middle market strategies Unique Deal Sourcing Infrastructure ▪ Robust direct origination platform has en
Slide 5: WhiteHorse Finance Overview
▪ Consistent, robust deal flow generated through H.I.G.’s proprietary sourcing network - Proprietary deal sourcing consisting of sponsored and non - sponsored opportunities - Experienced team able to underwrite more complex non - sponsored opportunities ▪ Over 2,000 opportunities reviewed and approx
Slide 6: H.I.G. Capital Overview
Note: As of September 30, 2017 (1) Based on total capital commitments managed by H.I.G. Capital and affiliates 5 H.I.G. Capital Overview ▪ Leading global alternative asset manager focused on the lower middle market , defined as companies with $50MM to $350MM of enterprise value − Founded in 1993; ~$
Slide 7: Lower Middle Market Overview
6 Lower Middle Market Overview Unstructured and Inefficient Market ▪ Sourcing lower middle market lending opportunities requires access to an extensive network of relationships in local small - business communities (as opposed to the established investment banking sources for larger companies) Speci
Slide 8: Self-Originated Lower Middle Market vs Broadly Syndicated Market
7 Self - Originated Lower Middle Market Broadly Syndicated 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 Number
Slide 9: WhiteHorse Finance Portfolio Investment Characteristics
8 WhiteHorse Finance Portfolio Investment Characteristics As of September 30, 2017; based on fair value of investments; numbers may not foot due to rounding Loan Composition 100% of WHF loans are senior secured 99.95% of floating loans have LIBOR floors Highly diversified portfolio by sector with si
Slide 10: WhiteHorse Finance Performance Summary
WhiteHorse Finance Performance Summary Summary Stats: Invested Capital since IPO: $845MM (1) Number of Investments Made: ~73 (1) Average Investment Size: ~$ 11.5 mm (2) All - in Yield : 12.1% (1) Net Debt / EBITDA of Current Portfolio Companies: ~ 3.4x (2)(3) Secured Debt as a % of Total Debt : 100%
Slide 11: WhiteHorse Differentiated Deal Flow
WhiteHorse Differentiated Deal Flow As a result of its proprietary sourcing network, we believe the WhiteHorse Finance portfolio has generated higher yields at lower portfolio company leverage than the broader middle market All - in Yield of Invested Capital (1) Leverage Multiple of Invested Capital
Slide 12: Origination Pipeline Funnel
Origination Pipeline Funnel (1) Dedicated origination resources provide wide - ranging access to proprietary opportunities in the lower middle market Opportunities Reviewed Initial Due Diligence Term Sheets Delivered Closed Transactions 11 246 2,979 39 959 (1) Origination Pipeline figures reflect 20
Slide 13: Rigorous Credit Process
Rigorous Credit Process Institutionalized processes for evaluating, monitoring and, if necessary, working out credits Fundamental Analysis » Structured approach to deal evaluation » Assesses industry, company, management, and macro factors » Emphasizes cash flow and downside protection Investment Co
Slide 14: Appendix
Appendix 8 eo PEMORSE.
Slide 15: Historical Quarterly Operating Highlights
14 Historical Quarterly Operating Highlights (USD amounts in millions, except per share data) (1) (3)
Slide 16: Historical Quarterly Balance Sheet Highlights
15 Historical Quarterly Balance Sheet Highlights (USD amounts in millions, except per share data)
Slide 17: WhiteHorse Finance – Senior Team Bios
16 WhiteHorse Finance – Senior Team Bios Title Years of Experience Highlights John Bolduc ▪ Chairman of the Board ▪ Member of the Investment Committee 26 ▪ Leads H.I.G. Capital’s c redit platform ▪ Previous experience at Bain & Company and Chemed Corporation Stuart Aronson ▪ Chief Executive Officer
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