Whitehorse Finance, Inc. · NASDAQ:WHF
Whitehorse Finance — Q1 2025 Earnings Presentation
25 slides from Whitehorse Finance's earnings presentation, May 13, 2025
Slide 1: WhiteHorse Finance, Inc. Earnings Presentation
WhiteHorse Finance, Inc. Earnings Presentation Quarter Ended March 31, 2025 NASDAQ: WHF (Common Stock) NASDAQ: WHFCL (7.875% Notes due 2028)
Slide 2: Important Information and Forward Looking Statements
Important Information and Forward Looking Statements References in this presentation to “WHF”, “WhiteHorse Finance”, “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 recomme
Slide 3: WhiteHorse Finance Snapshot
WhiteHorse Finance Snapshot Company: WhiteHorse Finance, Inc. Equity Ticker: NASDAQ: WHF Market Cap: $216.9MM(1) Credit Rating: Egan-Jones: BBB+ / DBRS: BBB (low) NAV / Share: $12.11(2) Portfolio Fair Value: $651.0MM Current Dividend Yield: 16.5%(1)(3); quarterly dividends at or above $0.355 per sha
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 (the “Investment Adviser”), an affiliate of H.
Slide 5: Overview of WhiteHorse Finance, Inc. (continued)
Overview of WhiteHorse Finance, Inc. (continued) Investment Strategy Summary Stats: Invested Capital since IPO: $2,778MM (1) Generate attractive risk-adjusted returns in all market conditions by originating and investing in senior secured loans to performing lower middle market companies and lever
Slide 6: Summary of Quarterly Results
Summary of Quarterly Results Q1 Net Investment Income (“NII”) and Q1 Core NII(1) was $6.8 million, or $0.294 per share, which compares with Q4 NII and Q4 Core NII of $8.0 million, or $0.343 per share. Net realized and unrealized losses on investments and foreign currency transactions for Q1 2025
Slide 7: Quarterly Operating Highlights
Quarterly Operating Highlights Note: Numbers may not foot due to rounding. (1) Total investment income includes investment income (e.g., interest and dividends) from investments in STRS JV. (2) Core net investment income is a non-GAAP financial measure. The Company believes that core net investment
Slide 8: Quarterly Balance Sheet Highlights
Quarterly Balance Sheet Highlights Note: Numbers may not foot due to rounding (1) Includes Restricted Cash. (2) Calculated as Total Gross Debt Outstanding divided by Total Net Assets. (3) Net Leverage Ratio is defined as debt outstanding less cash, divided by total net assets. 7 (4) Calculated as th
Slide 9: Portfolio Highlights
Portfolio Highlights Portfolio Highlights Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 (USD in MM) Portfolio Activity New Investment Commitments $ 65.2 $ 69.2 $ 60.5 $ 42.0 $ 59.1 (1) Gross Fundings 58.2 58.2 52.9 37.9 47.2 (1) (2) Exits and Repayments (54.9) (97.1) (46.2) (47.3) (37.5) Net Fundings / (R
Slide 10: Portfolio Highlights
Portfolio Highlights ($ in MM, except per share data) Note: Not a guarantee of future performance or investment pace. (1) Does not include investments in STRS JV. (2) Calculated based on funded principal amounts of debt investments. (3) Weighted average effective yield is computed by dividing (a) an
Slide 11: Portfolio Trends
Portfolio Trends Historical Portfolio Trends % Floating and % Fixed (Based on Fair Value) % Instrument Type (Based on Fair Value) 0.1% 0.2% 0.4% 0.4% 0.9% 1.3% 1.3% 100.0% 100% 3% 9% 6% 7% 9% 3% 3% 15% 17% 16% 21% 4% 3% 3% 11% 2% 80.0% 80% 3% 4% 1% 4% 1% 39% 60.0% 60% 99.9% 100.0% 100.0% 99.8% 99.6%
Slide 12: Borrower and Industry Diversity
Borrower and Industry Diversity Composition by Borrower (Based on Fair Value) Composition by Industry(1) (Based on Fair Value) STRS JV Sleep OpCo LLC Air Freight & Logistics Data Processing & Outsourced Services Future Payment Technologies, L.P. ABB/Con-cise Optical Group LLC Systems Software Applic
Slide 13: Effective Yield & Dividend Coverage
Effective Yield & Dividend Coverage Debt Portfolio Effective Yield and Borrower Leverage(1) From IPO to March 31, 2025 4.5x 4.1x 4.2x 4.1x 4.1x 4.1x 4.1x 4.2x 4.0x 4.1x 4.1x 4.1x 4.0x 4.1x 4.1x 4.1x 4.1x 4.1x 4.1x 3.8x 3.7x 3.8x 3.7x 3.8x 3.4x 3.4x 3.6x 3.4x 3.5x 3.4x 3.4x 3.5x 3.6x 3.6x 3.6x 3.6x 3
Slide 14: Yield & Interest Rate Economic Analysis
Yield & Interest Rate Economic Analysis 16.0% 13.6% 13.7% 13.7% 13.8% 14.0% 13.2% 13.4% 13.1% 12.6% 12.5% 12.1% 11.4% 13.1% 13.2% 13.2% 13.2% 12.0% 12.6% 12.9% 12.5% 12.1% 12.0% 9.9% 11.6% 9.5% 9.3% 9.2% 10.0% 9.1% 10.8% 9.4% 8.0% 9.0% 8.8% 8.8% 7.1% 7.1% 7.1% 7.2% 7.2% 7.4% 8.6% 6.8% 7.1% 6.8% 6.4%
Slide 15: Investment Performance Ratings
Investment Performance Ratings 14
Slide 16: Net Asset Value Trends
Net Asset Value Trends Net Asset Value Per Share $18.00 15.56 $16.00 15.43 15.55 15.30 14.81 15.00 15.35 15.23 15.23 15.10 14.21 15.16 15.04 $14.00 13.63 13.98 14.30 13.13 13.33 13.63 12.93 $12.00 12.31 12.11 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 Net Asset Value If No Special Dividends Were Paid Net
Slide 17: NAV Per Share Bridge
NAV Per Share Bridge Note: Numbers may not foot due to rounding. Core net investment income is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company's financial performance excluding
Slide 18: Leverage Migration
Leverage Migration ($ in MM) 12/31/2024 Quarterly Change 3/31/2025 Outstanding Debt: Outstanding Debt: $356.0 $8.6 $364.6 Driven by net borrowings to fund new investments NAV: NAV: $286.1 ($4.7) $281.4 Driven by net realized & unrealized losses Sources Uses Leverage Ratio: Leverage Ratio: Sales & Pr
Slide 19: Funding Profile
Funding Profile Current Debt Outstanding (as of March 31, 2025) ($ in MM) Commitment Outstanding(1) Weighted Average Interest Rate Maturity $335.0 S+2.250% Revolving Credit Facility $170.1 2030 (Accordion Feature up to $375) payable quarterly 5.375% 5.375% 2025 Notes $40.0 $40.0 2025 payable semi-an
Slide 20: Appendix
Appendix Pay WWEITTEHORSE 19 FINANCE
Slide 21: Regional Direct Origination Footprint
Regional Direct Origination Footprint Origination Footprint Scope of H.I.G. WhiteHorse market coverage results in consistent investment activity levels regardless of market conditions Dedicated direct lending team of approximately 73 investment and origination professionals Regional footprint
Slide 22: STRS JV Key Terms and Funding Profile
STRS JV Key Terms and Funding Profile ($ in MM) WHF and STRS Ohio have committed to provide up to $175 million in subordinated notes and equity to STRS JV, with STRS Ohio providing $60 million and WHF providing $115 million WHF and STRS Ohio share voting control 50%/50% Key Terms Equity owners
Slide 23: STRS JV Borrower and Industry Diversity
STRS JV Borrower and Industry Diversity Composition by Borrower (Based on Fair Value) Composition by Industry(1) (Based on Fair Value) IT Consulting & Other Services Environmental & Facilities Services Source Code Holdings, LLC Marlin DTC-LS Midco 2, LLC Diversified Support Services Advertising Meta
Slide 24: Origination Pipeline Funnel
Origination Pipeline Funnel(1) Three tier sourcing platform, generating meaningful investable opportunities for WhiteHorse Finance 20+ person business development Approximately 70 WhiteHorse deal team seeks opportunities from Deals being sourced by over 500 professionals dedicated to sourcing H.I.G.
Slide 25: Corporate Data
Corporate Data Board of Directors Investment Committee Corporate Executive Officers Research Coverage Corporate Counsel John Bolduc Sami Mnaymneh Stuart Aronson Sean-Paul Adams Dechert LLP Chairman of the Board Co-Founder, Co-Executive Chairman and Chief Executive Officer B. Riley FBR New York, NY C