10-Q 1 tm2111694d1_10q.htm FORM 10-Q

 

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

WASHINGTON, DC 20549

 

Form 10-Q

 

(Mark One)

 

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2021 

or

 

¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 

 

1934 For the transition period from ______________ to ______________

 

Commission file number: 814-00967

 

WHITEHORSE FINANCE, INC. 

(Exact Name of Registrant as Specified in its Charter)

 

Delaware 45-4247759
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
   
1450 Brickell Avenue, 31st Floor  
Miami, Florida 33131
(Address of Principal Executive Offices) (Zip Code)

 

(305) 381-6999

(Registrant’s Telephone Number, Including Area Code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share WHF The Nasdaq Stock Market LLC
    (Nasdaq Global Select Market)
6.50% Notes due 2025 WHFBZ The Nasdaq Stock Market LLC
    (Nasdaq Global Select Market)

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ¨ No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ¨ Accelerated filer ¨
       
Non-accelerated filer x Smaller reporting company ¨
       
    Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ¨ No x

 

As of May 7, 2021 the Registrant had 20,598,344 shares of common stock, $0.001 par value, outstanding.

 

 

 

 

 

 

WHITEHORSE FINANCE, INC.

 

TABLE OF CONTENTS  

 

    Page
Part I. Financial Information 3
Item 1. Financial Statements 3
  Consolidated Statements of Assets and Liabilities as of March 31, 2021 (Unaudited) and December 31, 2020 3
  Consolidated Statements of Operations for the three months ended March 31, 2021 (Unaudited) and 2020 (Unaudited) 4
  Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2021 (Unaudited) and 2020 (Unaudited) 5
  Consolidated Statements of Cash Flows for the three months ended March 31, 2021 (Unaudited) and 2020 (Unaudited) 6
  Consolidated Schedules of Investments as of March 31, 2021 (Unaudited) and December 31, 2020 7
  Notes to the Consolidated Financial Statements (Unaudited) 20
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 50
Item 3. Quantitative and Qualitative Disclosures about Market Risk 65
Item 4. Controls and Procedures 65
Part II. Other Information 66
Item 1. Legal Proceedings 66
Item 1A. Risk Factors 66
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 68
Item 3. Defaults Upon Senior Securities 68
Item 4. Mine Safety Disclosures 68
Item 5. Other Information 68
Item 6. Exhibits 68

 

2

 

 

Part I. Financial Information

 

Item 1. Financial Statements

WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)

 

   March 31, 2021   December 31, 2020 
   (Unaudited)     
Assets          
Investments, at fair value          
Non-controlled/non-affiliate company investments  $546,264   $623,777 
Non-controlled affiliate company investments   15,283    15,717 
Controlled affiliate company investments   55,440    51,241 
Total investments, at fair value (amortized cost $629,210 and $695,429, respectively)   616,987    690,735 
Cash and cash equivalents   7,701    8,062 
Restricted cash and cash equivalents   16,342    7,549 
Restricted foreign currency (cost of $411 and $319, respectively)   431    333 
Interest and dividend receivable   7,347    6,532 
Amounts receivable on unsettled investment transactions   18,619    4,717 
Escrow receivable   1,939    - 
Receivable for common stock sold   8    - 
Prepaid expenses and other receivables   1,132    1,061 
Total assets  $670,506   $718,989 
           
Liabilities          
Debt  $334,507   $384,880 
Distributions payable   7,307    7,294 
Management fees payable   3,344    3,354 
Incentive fees payable   6,493    6,117 
Amounts payable on unsettled investment transactions   -    497 
Interest payable   2,249    1,870 
Accounts payable and accrued expenses   1,899    1,708 
Unrealized depreciation on foreign currency forward contracts   1    - 
Advances received from unfunded credit facilities   357    372 
Total liabilities   356,157    406,092 
           
Commitments and contingencies (See Note 8)          
           
Net assets          
Common stock, 20,583,835 and 20,546,032 shares issued and outstanding, par value $0.001 per share, respectively, and 100,000,000 shares authorized   21    21 
Paid-in capital in excess of par   300,592    300,002 
Accumulated earnings   13,736    12,874 
Total net assets   314,349    312,897 
Total liabilities and total net assets  $670,506   $718,989 
           
Number of shares outstanding   20,583,835    20,546,032 
Net asset value per share  $15.27   $15.23 

 

See notes to the consolidated financial statements

 

3

 

 

WhiteHorse Finance, Inc. 

Consolidated Statements of Operations (Unaudited) 

(in thousands, except share and per share data)

 

   Three months ended March 31, 
   2021   2020 
Investment income          
From non-controlled/non-affiliate company investments          
Interest income  $14,812   $13,140 
Fee income   771    291 
Dividend income   44    49 
From non-controlled affiliate company investments          
Dividend income   250    275 
From controlled affiliate company investments          
Interest income   719    625 
Dividend income   1,374    153 
Total investment income   17,970    14,533 
           
Expenses          
Interest expense   3,802    3,668 
Base management fees   3,344    3,092 
Performance-based incentive fees   2,042    441 
Administrative service fees   171    171 
General and administrative expenses   821    881 
Total expenses   10,180    8,253 
Net investment income before excise tax   7,790    6,280 
Excise tax   190    178 
Net investment income after excise tax   7,600    6,102 
           
Realized and unrealized gains (losses) on investments and foreign currency transactions          
Net realized gains (losses)          
Non-controlled/non-affiliate company investments   8,160    510 
Non-controlled affiliate company investments   -    - 
Foreign currency transactions   1    (3)
Foreign currency forward contracts   -    6 
Net realized gains (losses)   8,161    513 
Net change in unrealized appreciation (depreciation)          
Non-controlled/non-affiliate company investments   (6,975)   (22,196)
Non-controlled affiliate company investments   (434)   (2,001)
Controlled affiliate company investments   (120)   (3,953)
Translation of assets and liabilities in foreign currencies   (62)   580 
Foreign currency forward contracts   (1)   (1)
Net change in unrealized appreciation (depreciation)   (7,592)   (27,571)
Net realized and unrealized losses on investments   569    (27,058)
Net increase (decrease) in net assets resulting from operations  $8,169   $(20,956)
           
Per Common Share Data          
Basic and diluted earnings (loss) per common share  $0.40   $(1.01)
Dividends and distributions declared per common share  $0.36   $0.36 
Basic and diluted weighted average common shares outstanding   20,551,565    20,546,032 

 

See notes to the consolidated financial statements

 

4

 

 

WhiteHorse Finance, Inc.

Consolidated Statements of Changes in Net Assets (Unaudited)

(in thousands, except share and per share data)

 

           Paid-in   Accumulated     
           Capital in   Undistributed     
   Common Stock   Excess of   (Overdistributed)   Total Net 
   Shares   Par amount   Par   Earnings   Assets 
Balance at December 31, 2019   20,546,032   $21   $300,744   $12,190   $312,955 
Net increase in net assets resulting from operations:                         
Net investment income after excise tax   -    -    -    6,102    6,102 
Net realized gains (losses) on investments   -    -    -    513    513 
Net change in unrealized appreciation (depreciation) on investments   -    -    -    (27,571)   (27,571)
Distributions declared   -    -    -    (7,294)   (7,294)
Balance at March 31, 2020   20,546,032   $21   $300,744   $(16,060)  $284,705 
                          
Balance at December 31, 2020   20,546,032   $21   $300,002   $12,874   $312,897 
Stock issued in connection with at-the-market offering   37,803    -    590    -    590 
Net increase in net assets resulting from operations:                         
Net investment income after excise tax   -    -    -    7,600    7,600 
Net realized gains (losses) on investments   -    -    -    8,161    8,161 
Net change in unrealized appreciation (depreciation) on investments   -    -    -    (7,592)   (7,592)
Distributions declared   -    -    -    (7,307)   (7,307)
Balance at March 31, 2021   20,583,835   $21   $300,592   $13,736   $314,349 

 

See notes to the consolidated financial statements

 

5

 

 

WhiteHorse Finance, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

   Three months ended 
   March 31, 
    2021    2020 
Cash flows from operating activities          
Net increase (decrease) in net assets resulting from operations  $8,169   $(20,956)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided
by operating activities:
          
Paid-in-kind income   (494)   (308)
Net realized gains on investments   (8,160)   (510)
Net unrealized (appreciation) depreciation on investments   7,529    28,150 
Net unrealized appreciation on translation of assets and liabilities in foreign currencies   62    (580)
Net unrealized depreciation on foreign currency forward contracts   1    1 
Accretion of discount   (2,561)   (684)
Amortization of deferred financing costs   329    256 
Acquisition of investments   (72,388)   (27,640)
Proceeds from principal payments and sales of portfolio investments   125,200    17,847 
Proceeds for sales of portfolio investments to STRS JV   24,623    15,717 
Net changes in operating assets and liabilities:          
Interest and dividend receivable   (815)   (330)
Escrow receivable   (1,939)   - 
Prepaid expenses and other receivables   (71)   7,266 
Amounts receivable on unsettled investment transactions   (13,902)   286 
Amounts payable on unsettled investment transactions   (497)   28 
Management fees payable   (9)   32 
Incentive fees payable   375    (2,131)
Accounts payable and accrued expenses   191    (417)
Interest payable   379    (547)
Advances received from unfunded credit facilities   (15)   (10)
Net cash provided by operating activities   66,007    15,470 
           
Cash flows from financing activities          
Proceeds from sales of common stock, net of offering costs   582    - 
Borrowings   35,049    44,395 
Repayments of debt   (85,801)   (52,045)
Deferred financing costs   (20)   - 
Distributions paid to common stockholders, net of distributions reinvested   (7,294)   (7,294)
Net cash used in financing activities   (57,484)   (14,944)
Effect of exchange rate changes on cash   5    (7)
Net change in cash, cash equivalents and restricted cash   8,528    519 
Cash, cash equivalents and restricted cash at beginning of period   15,946    27,546 
Cash, cash equivalents and restricted cash at end of period  $24,474   $28,065 
           
Supplemental disclosure of cash flow information:          
Interest paid  $2,651   $3,995 
Non-cash exchanges of investments   4,320    12,741 

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated statements of assets and liabilities that sum to the total of the same amounts presented in the consolidated statements of cash flows:

 

   March 31, 
   2021   2020 
Cash and cash equivalents  $7,701   $16,452 
Restricted cash and restricted foreign currency   16,773    11,613 
           
Total cash, cash equivalents and restricted cash presented in consolidated statements of cash flows  $24,474   $28,065 

 

See notes to the consolidated financial statements

 

6

 

 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(in thousands)

 

Investment Type(1)   Spread
Above
Index(2)
  Interest
Rate(3)
  Acquisition Date(10)   Maturity
Date
  Principal/
Share
Amount
  Amortized
Cost
  Fair
Value(11)
  Fair Value
As A
Percentage
of Net
Assets
 
North America                                      
Debt Investments                                      
Advertising                                      
SmartSign Holdings LLC                                      
First Lien Secured Term Loan   L+ 7.50%   8.50%   08/21/20   10/11/24   7,724    $ 7,593    $ 7,724   2.46
    (1.00% Floor)                                  
Air Freight & Logistics                                      
Access USA Shipping, LLC                                      
First Lien Secured Term Loan   L+ 8.00%   9.50%   02/08/19   02/08/24   5,286     5,241     5,286   1.68  
    (1.50% Floor)                                  
Application Software                                      
Connexity, Inc.                                      
First Lien Secured Term Loan   L+ 8.50%   10.00%   05/21/20   05/21/25   10,794     10,486     10,794   3.43  
    (1.50% Floor)                                  
Newscycle Solutions, Inc.                                      
First Lien Secured Term Loan   L+ 7.00%   8.00%   06/14/19   12/29/22   3,237     3,205     3,185   1.01  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan(7)   L+ 7.00%   8.00%   06/14/19   12/29/22   145     143     141   0.04  
    (1.00% Floor)                                  
 TaxSlayer LLC                                      
First Lien Secured Term Loan   L+ 6.50%   7.50%   12/31/20   12/31/26   6,796     6,666     6,666   2.12  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan(7)   L+ 6.50%   7.50%   12/31/20   12/31/26   -     -     -   -  
    (1.00% Floor)                                  
                    20,972     20,500     20,786   6.60  
Automotive Retail                                      
Team Car Care Holdings, LLC                                      
First Lien Secured Term Loan(12)   Base rate+ 7.99%   9.01%   02/26/18   02/23/23   16,007     15,870     15,650   4.98  
    (1.00% Floor)                                  
Building Products                                      
Drew Foam Companies Inc                                      
First Lien Secured Term Loan   L+ 6.50%   7.50%   12/15/20   11/05/25   7,261     7,124     7,127   2.27  
    (1.00% Floor)                                  
LHS Borrower, LLC                                      
First Lien Secured Term Loan   L+ 6.75%   7.75%   09/30/20   09/30/25   9,689     9,493     9,550   3.04  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan(7)   L+ 6.75%   7.75%   09/30/20   09/30/25   131     128     131   0.04  
    (1.00% Floor)               17,081     16,745     16,808   5.35  
Cable & Satellite                                      
Bulk Midco, LLC                                      
First Lien Secured Term Loan(15)   L+ 7.34%   8.34%   06/08/18   06/08/23   15,000     14,902     14,250   4.53  
    (1.00% Floor)                                  
Construction & Engineering                                      
SFP Holding, Inc.                                      
First Lien Secured Delayed Draw Loan(7)   L+ 6.25%   7.25%   01/25/21   01/24/25   1,054     1,039     1,050   0.33  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan(7)   L+ 6.25%   7.25%   02/22/21   09/01/23   -     -     1   -  
    (1.00% Floor)                                  
Tensar Corp.                                      
First Lien Secured Term Loan   L+ 6.75%   7.75%   11/20/20   08/20/25   6,983     6,821     6,918   2.20  
    (1.00% Floor)                                  
                    8,037     7,860     7,969   2.53  
Construction Materials                                      
Claridge Products and Equipment, LLC                                      
First Lien Secured Term Loan   L+ 6.50%   7.50%   12/30/20   12/29/25   7,980     7,828     7,828   2.49  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan(7)   L+ 6.50%   7.50%   12/30/20   12/29/25   -     -     -   -  
    (1.00% Floor)               7,980     7,828     7,828   2.49  
Consumer Finance                                      
Maxitransfers Blocker Corp                                      
First Lien Secured Term Loan   L+ 9.00%   10.00%   10/07/20   10/07/25   8,813     8,624     8,725   2.78  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan(4)(7)   L+ 9.00%   10.00%   10/07/20   10/07/25   -     -     12   -  
    (1.00% Floor)               8,813     8,624     8,737   2.78  
                                       
Data Processing & Outsourced Services                                      
Escalon Services Inc                                      
First Lien Secured Term Loan   L+13.50%   14.50%   12/04/20   12/04/25   8,014     7,346     7,379   2.35  
    (1.00% Floor)   (1.50%PIK)                              
FPT Operating Company, LLC/                                      
TLabs Operating Company, LLC                                      
First Lien Secured Term Loan   L+ 8.25%   9.25%   12/23/16   06/07/24   24,467     24,238     24,224   7.71  
    (1.00% Floor)                                  
Geo Logic Systems Ltd. (5)                                      
First Lien Secured Term Loan(13)   C +6.50%   7.50%   12/19/19   12/19/24   6,666     5,009     5,198   1.65  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan (7)(13)   C +6.50%   7.50%   12/19/19   12/19/24   -     -     (2 ) -  
    (1.00% Floor)               39,147     36,593     36,799   11.71  
Department Stores                                      
Mills Fleet Farm Group, LLC                                      
First Lien Secured Term Loan   L+ 6.00%   7.00%   10/24/18   10/24/24   13,543     13,303     13,408   4.27  
    (1.00% Floor)                                  
Distributors                                      
Crown Brands, LLC                                      
Second Lien Secured Term Loan(19)   L+ 10.50%   12.00%   12/15/20   01/08/26   4,453     4,353     3,562   1.13  
    (1.50% Floor)                                  
Second Lien Secured Delayed Draw Loan(19)   L+ 10.50%   12.00%   12/15/20   01/08/26   661     660     528   0.17  
    (1.50% Floor)               5,114     5,013     4,090   1.30  

  

See notes to the consolidated financial statements

 

7

 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(in thousands)

 

 

Diversified Chemicals                                      
Sklar Holdings, Inc.                                      
First Lien Secured Term Loan   L+ 7.75%   8.75%   11/13/19   05/13/23   7,473   $ 7,346   $ 7,473   2.38 %
    (1.00% Floor)                                  
                                       
Diversified Support Services                                      
NNA Services, LLC                                      
First Lien Secured Term Loan   L+ 7.00%   8.50%   10/16/18   10/16/23   13,263     13,105     13,263   4.22  
    (1.50% Floor)                                  
Education Services                                      
EducationDynamics, LLC                                      
First Lien Secured Term Loan   L+ 7.75%   8.75%   11/26/19   11/26/24   12,796     12,602     12,789   4.07  
    (1.00% Floor)                                  
Health Care Facilities                                      
Epiphany Dermatology                                      
First Lien Secured Term Loan   L+ 7.50%   8.50%   12/04/20   06/22/23   3,491     3,415     3,456   1.10  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan (7)   L+ 7.50%   8.50%   12/04/20   06/22/23   -     -     5   -  
    (1.00% Floor)                                  
First Lien Secured Delayed Draw Loan (7)   L+ 7.50%   8.50%   12/04/20   06/22/23   -     -     36   0.01  
    (1.00% Floor)                                  
Grupo HIMA San Pablo, Inc.                                      
First Lien Secured Term Loan A (8)   L+ 9.00%   9.22%   05/15/19   04/30/19   3,855     3,855     2,147   0.68  
                                       
First Lien Secured Term Loan B(8)   L+ 9.00%   10.50%   02/01/13   04/30/19   13,511     13,511     7,526   2.39  
    (1.50% Floor)                                  
Second Lien Secured Term Loan(8)   N/A   15.75%   02/01/13   07/31/18   1,028     1,024     -   -  
        (2.00 %PIK)           21,885     21,805     13,170   4.18  
Health Care Services                                      
CHS Therapy, LLC                                      
First Lien Secured Term Loan A   L+ 8.50%   10.00%   06/14/19   06/14/24   7,374     7,284     7,374   2.35  
    (1.50% Floor)                                  
First Lien Secured Term Loan C   L+ 8.50%   10.00%   10/07/20   06/14/24   906     891     906   0.29  
    (1.50% Floor)                                  
DCA Investment Holding, LLC                                      
First Lien Secured Term Loan   L+ 6.25%   7.00%   03/11/21   03/12/27   7,060     6,955     6,955   2.21  
    (0.75% Floor)                                  
First Lien Secured Delayed Draw Loan(7)   L+ 6.25%   L+ 7.00%   03/11/21   03/12/27   -     -     (13 ) -  
    (0.75% Floor)                                  
Ivy Rehab Holdings LLC                                      
First Lien Secured Term Loan   L+ 6.75%   7.75%   12/04/20   12/04/24   8,833     8,671     8,768   2.79  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan (7)   L+ 6.75%   7.75%   12/04/20   12/04/24   -     -     6   -  
    (1.00% Floor)                                  
First Lien Secured Delayed Draw Loan (7)   L+ 6.75%   7.75%   12/04/20   12/04/24   155     152     170   0.05  
    (1.00% Floor)                                  
Lab Logistics, LLC                                      
First Lien Secured Term Loan   L+ 7.25%   8.25%   10/16/19   11/19/25   1,164     1,141     1,151   0.37  
    (1.00% Floor)                                  
First Lien Secured Delayed Draw Loan   L+ 7.25%   8.25%   10/16/19   09/25/23   5,223     5,198     5,223   1.66  
    (1.00% Floor)                                  
PG Dental New Jersey Parent, LLC                                      
First Lien Secured Term Loan   L+ 7.75%   8.75%   11/25/20   11/25/25   16,130     15,792     15,830   5.04  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan (7)   L+ 7.75%   8.75%   11/25/20   11/25/25   -     -     3   -  
    (1.00% Floor)               46,845     46,084     46,373   14.76  
Home Furnishings                                      
Sure Fit Home Products, LLC                                      
First Lien Secured Term Loan(8)   L+ 9.75%   10.75%   10/26/18   07/13/22   5,243     5,111     4,672   1.49  
    (1.00% Floor)                                  
Interactive Media & Services                                      
What If Media Group, LLC                                      
First Lien Secured Term Loan   L+ 7.00%   8.00%   10/02/19   10/02/24   17,561     17,285     17,461   5.55  
    (1.00% Floor)                                  
Internet & Direct Marketing Retail                                      
BBQ Buyer, LLC                                      
First Lien Secured Term Loan   L+ 8.00%   9.50%   08/28/20   08/28/25   12,698     12,412     12,753   4.06  
    (1.50% Floor)                                  
Clarus Commerce, LLC                                      
First Lien Secured Term Loan   L+ 6.50%   7.50%   03/05/21   07/01/25   1,917     1,879     1,879   0.60  
    (1.00% Floor)                                  
Luxury Brand Holdings, Inc.                                      
First Lien Secured Term Loan   L+ 7.00%   8.00%   12/04/20   06/04/26   5,985     5,872     5,926   1.89  
    (1.00% Floor)                                  
Potpourri Group, Inc.                                      
First Lien Secured Term Loan   L+ 8.25%   9.75%   07/03/19   07/03/24   18,270     18,003     18,271   5.81  
    (1.50% Floor)               38,870     38,166     38,829   12.36  
Investment Banking & Brokerage                                      
JVMC Holdings Corp. (f/k/a RJO Holdings Corp)                                      
First Lien Secured Term Loan   L+ 7.75%   8.75%   02/28/19   02/28/24   13,381     13,303     13,381   4.26  
    (1.00% Floor)                                  
IT Consulting & Other Services                                      
AST-Applications Software Technology LLC                                      
First Lien Secured Term Loan   L+ 8.00%   9.00%   01/10/17   01/10/23   4,004     3,977     4,004   1.27  
    (1.00% Floor)   (1.00% PIK)                              
Core BTS, Inc.                                      
First Lien Secured Term Loan   L+ 6.75%   8.25%   02/01/21   08/30/25   3,333     3,269     3,269   1.04  
    (1.50% Floor)                                  
First Lien Secured Delayed Draw Loan (7)   L+ 6.75%   8.25%   02/01/21   08/30/25   -     -     (16 ) -  
    (1.50% Floor)               7,337      7,246      7,257    2.31   
Leisure Facilities                                      
Honors Holdings, LLC                                      
First Lien Secured Term Loan (16)   L+ 8.48%   9.48%   09/06/19   09/06/24   9,651     9,502     8,878   2.82  
    (1.00% Floor)   (1.00% PIK)                              
First Lien Secured Delayed Draw Loan(16)   L+ 8.11%   9.11%   09/06/19   09/06/24   4,750     4,704     4,370   1.39  
    (1.00% Floor)   (1.00% PIK)                              
Lift Brands, Inc. (aka Snap  Fitness Holdings, Inc.)                                      
First Lien Secured Term Loan A   L+ 7.50%   8.50%   06/29/20   06/29/25   5,659     5,585     5,572   1.77  
    (1.00% Floor)                                  
First Lien Secured Term Loan B   N/A   9.50%   06/29/20   06/29/25   1,191     1,167     1,160   0.37  
        (9.50% PIK)                              
First Lien Secured Term Loan C (9)   N/A   9.50%   06/29/20   NA   1,268     1,265     1,264   0.40  
        (9.50% PIK)           22,519     22,223     21,244   6.75  

  

See notes to the consolidated financial statements

 

8

 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(in thousands)

 

Office Services & Supplies                                      
Empire Office, Inc.                                      
First Lien Secured Term Loan   L+ 6.75%   8.25%   04/12/19   04/12/24   10,577    $ 10,449    $ 10,341   3.29
    (1.50% Floor)                                  
Packaged Foods & Meats                                      
Lenny & Larry's, LLC                                      
First Lien Secured Term Loan(17)   L+ 8.41%   9.41%   05/15/18   05/15/23   10,997     10,907     10,513   3.34  
    (1.00% Floor)   (1.72%PIK)                              
Personal Products                                      
Inspired Beauty Brands, Inc.                                      
First Lien Secured Term Loan   L+ 7.00%   8.00%   12/30/20   12/31/25   12,547     12,308     12,308   3.92  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan (7)   L+ 7.00%   8.00%   12/30/20   12/31/25   -     -     -   -  
    (1.00% Floor)               12,547      12,308      12,308    3.92   
Property & Casualty Insurance                                      
Policy Services Company, LLC (5)                                      
First Lien Secured Term Loan   L+ 6.00%   7.00%   03/06/20   05/31/24   6,224     5,990     6,100   1.94  
    (1.00% Floor)                                  
Research & Consulting Services                                      
Comniscient Technologies LLC                                      
First Lien Secured Term Loan   L+ 7.50%   8.50%   10/13/20   10/13/25   6,945     6,819     6,945   2.21  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan (7)   L+ 7.50%   8.50%   10/13/20   10/13/25   -     -     7   -  
    (1.00% Floor)                                  
Nelson Worldwide, LLC                                      
First Lien Secured Term Loan   L+ 9.25%   10.25%   01/09/18   01/09/23   10,972     10,875     10,862   3.46  
    (1.00% Floor)                                  
ALM Media, LLC                                      
First Lien Secured Term Loan   L+ 7.00%   8.00%   11/25/19   11/25/24   14,766     14,550     14,323   4.56  
    (1.00% Floor)               32,683     32,244     32,137   10.23  
Restaurants                                      
LS GFG Holdings Inc.                                      
First Lien Secured Term Loan   L+ 8.00%   9.00%   11/30/18   11/19/25   10,879     10,147     10,227   3.25  
    (1.00% Floor)   (2.00%PIK)                              
Specialized Consumer Services                                      
True Blue Car Wash, LLC                                      
First Lien Secured Term Loan   L+ 7.12%   8.12%   10/17/19   10/17/24   4,321     4,259     4,321   1.37  
    (1.00% Floor)                                  
First Lien Secured Delayed Draw Loan(7)   L+ 7.12%   8.12%   10/17/19   10/17/24   2,002     1,985     2,017   0.64  
    (1.00% Floor)               6,323      6,244      6,338    2.01   
Specialized Finance                                      
Golden Pear Funding Assetco, LLC(5)                                      
Second Lien Secured Term Loan   L+ 10.50%   11.50%   09/20/18   03/20/24   10,938     10,819     10,938   3.48  
    (1.00% Floor)                                  
WHF STRS Ohio Senior Loan Fund LLC                                      
Subordinated Note(4)(5)(7)(9)(14)   L+ 6.50%   6.61%   07/19/19   N/A   44,529     44,529     44,529   14.17  
                    55,467     55,348     55,467   17.65  
Specialty Chemicals                                      
Flexitallic Group SAS                                      
First Lien Secured Term Loan   L+ 6.50%   7.50%   10/28/19   10/29/26   11,603     11,370     10,802   3.44  
    (1.00% Floor)                                  
Systems Software                                      
Arcstor Midco, LLC                                      
First Lien Secured Term Loan   L+ 7.00%   8.00%   03/16/21   03/16/27   19,500     19,113     19,112   6.08  
    (1.00% Floor)                                  
                                       
IDIG Parent LLC                                      
First Lien Secured Term Loan   L+ 6.50%   7.50%   02/17/21   12/15/26   8,547     8,466     8,466   2.69  
    (1.00% Floor)                                  
First Lien Secured Delayed Draw Loan(7)   L+ 6.50%   7.50%   02/17/21   12/15/26   -     -     -   -  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan (7)   L+ 6.50%   7.50%   02/17/21   12/15/26   -     -     -   -  
    (1.00% Floor)               28,047      27,579      27,578    8.77   
Technology Hardware, Storage & Peripherals                                      
Source Code Midco, LLC                                      
First Lien Secured Term Loan   L+ 8.25%   9.25%   05/04/18   05/04/23   22,010     21,745     22,010   7.00  
    (1.00% Floor)                                  
Telestream Holdings Corporation                                      
First Lien Secured Term Loan   L+ 8.75%   9.75%   10/15/20   10/15/25   15,193     14,751     14,903   4.74  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan (7)   L+ 8.75%   9.75%   10/15/20   10/15/25   -     -     14   -  
    (1.00% Floor)               37,203     36,496      36,927    11.74   
Trading Companies & Distributors                                      
LINC Systems, LLC                                      
First Lien Secured Term Loan   L+ 6.50%   7.50%   02/24/21   02/24/26   8,355     8,191     8,191   2.61  
    (1.00% Floor)                                  
First Lien Secured Revolving Loan (7)   L+ 6.50%   7.50%   02/24/21   02/24/26   -     -     -   -  
    (1.00% Floor)               8,355      8,191      8,191    261   
                                       
Total Debt Investments                   602,782     591,621     582,176   185.20  
                                       
                                       
Equity Investments                                      
Data Processing & Outsourced Services                                      
Escalon Services Inc Warrants(4)   N/A   N/A   12/04/20   N/A   709     476     475   0.15  
Diversified Support Services                                      
Quest Events, LLC Preferred Units(4)   N/A   N/A   12/28/18   12/08/25   317     317     -   -  
ImageOne Industries, LLC Common A Units(4)   N/A   N/A   09/20/19   N/A   225     -     164   0.05  
                          317     164   0.05  
Health Care Services                                      
Lab Logistics Preferred Units (4)   N/A   N/A   10/29/19   N/A   2     857     857   0.27  
Internet & Direct Marketing Retail                                      
BBQ Buyer, LLC Shares(4)   N/A   N/A   08/28/20   N/A   1,100     1,100     2,200   0.70  
Ross-Simons Topco, LP Preferred Units(4)   N/A   N/A   12/04/20   N/A   600     600     600   0.19  
                          1,700     2,800   0.89  
Investment Banking & Brokerage                                      
Arcole Holding Corp.
Shares (4)(5)(6)(18)
  N/A   N/A   10/01/20   N/A   -     6,944     5,713   1.82  
IT Consulting & Other Services                                      
Keras Holdings, LLC Shares(4)   N/A   N/A   12/31/20   N/A   496     496     496   0.16  
Leisure Facilities                                      
 Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Class A Common Stock(4)   N/A   N/A   06/29/20   N/A   2     1,955     237   0.08  
 Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Warrants(4)   N/A   N/A   06/29/20   06/28/28   1     793     96   0.03  
                          2,748     333   0.11  
Other Diversified Financial Services                                      
SFS Global Holding Company Warrants(4)   N/A   N/A   06/28/18   12/28/25   -     -     -   -  
Sigue Corporation Warrants(4)   N/A   N/A   06/28/18   12/28/25   22     2,890     3,492   1.11  
                          2,890     3,492   1.11  
Specialized Finance                                      
NMFC Senior Loan Program I LLC Units (4)(5)(6)   N/A   N/A   06/10/14    08/31/22   10,000     10,029     9,570   3.04  
WHF STRS Ohio Senior Loan Fund LLC Interests (4)(5)(7)(14)   N/A   N/A   07/19/19   N/A   11,132     11,132     10,911   3.47  
                          21,161     20,481   6.51  
                                       
Total Equity Investments                         37,589     34,811   11.07  
                                       
Total Investments                        $ 629,210    $ 616,987   196.27 %

  

See notes to the consolidated financial statements

 

9

 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(in thousands)

 

Forward Currency Contracts

 

   Currency to be  Currency to be       Unrealized   Unrealized 
Counterparty  sold  purchased   Settlement date   appreciation ($)   depreciation ($) 
Morgan Stanley  C$ 105 CAD  $ 83 USD    04/28/2021   $-   $(1)
                $-   $(1)

 

(1)Except as otherwise noted, all investments are non-controlled/non-affiliate investments as defined by the Investment Company Act of 1940, as amended (the “1940 Act”), and provide collateral for the Company’s credit facility.

 

(2)The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), which resets monthly, quarterly or semiannually, the Canadian Dollar Offered Rate (“CDOR” or “C”) or the U.S. Prime Rate as published by the Wall Street Journal (“Prime” or “P”). The one, three and six-month LIBOR were 0.1%, 0.2% and 0.2%, respectively, as of March 31, 2021. The Prime was 3.25% as of March 31, 2021. The CDOR was 0.4% as of March 31, 2021.

 

(3)The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the payment-in-kind (“PIK”) interest rate, as the case may be.

 

(4)The investment or a portion of the investment does not provide collateral for the Company’s credit facility.

 

(5)Not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of total assets. Qualifying assets represented 86% of total assets as of the date of the consolidated schedule of investments.

 

(6)Investment is a non-controlled/affiliate investment as defined by the 1940 Act.

 

(7)The investment has an unfunded commitment in addition to any amounts presented in the consolidated schedule of investments as of March 31, 2021. See Note 8.

 

(8)The investment is on non-accrual status.

 

(9)Security is perpetual with no defined maturity date.

 

(10)Except as otherwise noted, all of the Company’s portfolio company investments, which as of the date of the consolidated schedule of investments represented 196% of the Company’s net assets or 92% of the Company’s total assets, are subject to legal restrictions on sales.

 

(11)The fair value of each investment was determined using significant unobservable inputs. See Note 5.

 

(12)The investment was comprised of two contracts, which were indexed to different base rates, L and P, respectively. The Spread Above Index and Interest Rate presented represent the weighted average of both contracts.

 

(13)Principal amount is denominated in Canadian dollars.

 

10

 

 

(14)Investment is a controlled affiliate investment as defined by the 1940 Act. On January 14, 2019, the Company entered into an agreement (as described in Note 4 hereto) with State Teachers Retirement System of Ohio, a public pension fund established under Ohio law (“STRS Ohio”), to create WHF STRS Ohio Senior Loan Fund, LLC (“STRS JV”), a joint venture, which invests primarily in senior secured first and second lien term loans.

 

(15)In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.75% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

 

(16)In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.50% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

 

(17)In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.00% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

 

(18)On October 1, 2020, as part of a restructuring agreement between the Company and Arcole Acquisition Corp, the Company’s investments in first lien secured term loans to Arcole Acquisition Corp were converted into common shares of Arcole Holding Corp.

 

(19)At the option of the issuer, interest can be paid in cash or cash and PIK. The issuer may elect to pay up to 2.00% PIK.

 

See notes to the consolidated financial statements

 

11

 

 

 

 

WHITEHORSE FINANCE, INC. 

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(in thousands)

 

                                            Fair Value  
                                            As A  
    Spread                     Principal/                 Percentage  
    Above   Interest     Acquisition     Maturity     Share     Amortized     Fair     of Net  
Investment Type(1)   Index(2)   Rate(3)     Date(10)     Date     Amount     Cost     Value(11)     Assets  
North America                                                            
Debt Investments                                                            
Advertising                                                            
Fluent, LLC                                                            
First Lien Secured Term Loan   L+ 7.00%     7.50 %     03/26/18       03/27/23       7,453     $ 7,453     $ 7,453       2.38 %
    (0.50% Floor)                                                        
SmartSign Holdings LLC                                                            
First Lien Secured Term Loan   L+ 7.50%     8.50 %     08/21/20       10/11/24       7,744       7,603       7,706       2.46  
    (1.00% Floor)                                                        
                                  15,197       15,056       15,159       4.84  
Agricultural & Farm Machinery                                                            
Bad Boy Mowers Acquisition, LLC                                                            
First Lien Secured Term Loan   L+ 5.75%     6.75 %     12/19/19       12/06/25       9,294       9,062       9,201       2.94  
    (1.00% Floor)                                                        
Air Freight & Logistics                                                            
Access USA Shipping, LLC                                                            
First Lien Secured Term Loan   L+ 8.00%     9.50 %     02/08/19       02/08/24       5,359       5,309       5,359       1.71  
    (1.50% Floor)                                                        
Application Software                                                            
Connexity, Inc.                                                            
First Lien Secured Term Loan   L+ 8.50%     10.00 %     05/21/20       05/21/25       10,863       10,577       10,863       3.47  
    (1.50% Floor)                                                        
Newscycle Solutions, Inc.                                                            
First Lien Secured Term Loan   L+ 7.00%     8.00 %     06/14/19       12/29/22       3,245       3,209       3,194       1.02  
    (1.00% Floor)                                                        
First Lien Secured Revolving Loan(7)    L+ 7.00%     8.00 %     06/14/19       12/29/22       181       179       177       0.06  
    (1.00% Floor)                                                        
TaxSlayer LLC                                                            
First Lien Secured Term Loan   L+ 6.50%     7.50 %     12/31/20       12/31/26       14,452       14,163       14,163       4.53  
    (1.00% Floor)                                                        
First Lien Secured Revolving Loan(7)      L+ 6.50%     7.50 %     12/31/20       12/31/26                          
    (1.00% Floor)                                                        
                                  28,741       28,128       28,397       9.08  
Automotive Retail                                                            
Team Car Care Holdings, LLC                                                            
First Lien Secured Term Loan(12)   Base rate+ 8.00%     9.00 %     02/26/18       02/23/23       16,168       16,011       15,820       5.06  
    (1.00% Floor)                                                        
BW Gas & Convenience Holdings, LLC                                                            
First Lien Secured Term Loan   L+ 6.25%     6.40 %     11/15/19       11/18/24       6,319       6,121       6,319       2.02  
    (0.00% Floor)                                                        
                                  22,487       22,132       22,139       7.08  
Broadcasting                                                            
Alpha Media, LLC                                                            
First Lien Secured Term Loan   P+7.50%     10.75 %     08/14/18       02/25/22       5,075       5,022       4,844       1.55  
    (2.00% Floor)                                                        
Building Products                                                            
Drew Foam Companies Inc                                                            
First Lien Secured Term Loan   L+ 6.50%     7.50 %     12/15/20       11/24/25       10,078       9,878       9,879       3.16  
    (1.00% Floor)                                                        
First Lien Secured Revolving Loan(7)      L+ 6.50%     7.50 %     12/15/20       11/05/25       332       325       325       0.10  
    (1.00% Floor)                                                        
LHS Borrower, LLC                                                            
First Lien Secured Term Loan   L+ 6.75%     7.75 %     09/30/20       09/30/25       9,689       9,483       9,543       3.05  
    (1.00% Floor)                                                        
First Lien Secured Revolving Loan (7)    L+ 6.75%     7.75 %     09/30/20       09/30/25                   4        
    (1.00% Floor)                                                        
                                  20,099       19,686       19,751       6.31  

 

See notes to consolidated financial statements

 

12

 

 

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(in thousands)

                                              Fair Value  
                                              As A  
    Spread                       Principal/                 Percentage  
    Above     Interest     Acquisition     Maturity     Share     Amortized     Fair     of Net  
Investment Type(1)   Index(2)     Rate(3)     Date(10)     Date     Amount     Cost     Value(11)     Assets  
Cable & Satellite                                                                 
Bulk Midco, LLC                                                                
First Lien Secured Term Loan(15)       L+ 7.19%       8.19 %     06/08/18       06/08/23       15,000     $ 14,890     $ 14,250       4.55 %
      (1.00% Floor)                                                          
Communications Equipment                                                                
Ribbon Communications Operating                                                                
    Company, Inc.                                                                
First Lien Secured Term Loan(5)       L+ 7.50%       7.65 %     08/14/20       03/03/26       12,438       12,002       12,313       3.94 %
      (0.00% Floor)                                                          
Sorenson Communications, LLC                                                                
First Lien Secured Term Loan     L+ 6.50%       6.75 %     03/15/19       04/29/24       3,462       3,393       3,457       1.10  
      (0.00% Floor)                                                          
                                      15,900       15,395       15,770       5.04  
Construction & Engineering                                                                
Atlas Intermediate Holdings LLC                                                                
First Lien Secured Term Loan     L+ 6.25%       7.25 %     05/26/20       02/13/26       15,073       14,259       14,922       4.77  
      (1.00% Floor)                                                          
Road Safety Services, Inc.                                                                
First Lien Secured Term Loan     L+ 6.00%       7.00 %     12/31/20       09/18/23       4,550       4,459       4,461       1.43  
      (1.00% Floor)                                                          
First Lien Secured Revolving Loan(7)       L+ 6.00%       7.00 %     12/31/20       09/18/23                   17       0.01  
      (1.00% Floor)                                                          
Tensar Corp.                                                                
First Lien Secured Term Loan     L+ 6.75%       7.75 %     11/20/20       08/20/25       7,000       6,829       6,829       2.18  
      (1.00% Floor)                                                          
                                      26,623       25,547       26,229       8.39  
Construction Materials                                                                
Claridge Products and Equipment, LLC                                                                
First Lien Secured Term Loan     L+ 6.50%       7.50 %     12/30/20       12/29/25       8,000       7,840       7,840       2.51  
      (1.00% Floor)                                                          
First Lien Secured Revolving Loan(7)       L+ 6.50%       7.50 %     12/30/20       12/29/25                          
      (1.00% Floor)                                                          
                                      8,000       7,840       7,840       2.51  
Consumer Finance                                                                
Maxitransfers Blocker Corp                                                                
First Lien Secured Term Loan     L+ 9.00%       10.00 %     10/07/20       10/07/25       8,869       8,668       8,668       2.77  
      (1.00% Floor)                                                          
First Lien Secured Revolving Loan(4)       L+ 9.00%       10.00 %     10/07/20       10/07/25       1,038       1,014       1,014       0.32  
      (1.00% Floor)                                                          
                                      9,907       9,682       9,682       3.09  
Data Processing & Outsourced Services                                                                
Escalon Services Inc                                                                
First Lien Secured Term Loan     P+12.50%       15.75 %     12/04/20       12/04/25       8,000       7,295       7,763       2.48  
      (0.75% Floor)       (1.50 %PIK)                                                
                                                                 
FPT Operating Company, LLC/                                                                
TLabs Operating Company, LLC                                                                
First Lien Secured Term Loan     L+ 8.25%       9.25 %     12/23/16       06/07/24       24,467       24,225       23,460       7.50  
      (1.00% Floor)       (0.50 %PIK)                                                
Geo Logic Systems Ltd.(5)                                                                
First Lien Secured Term Loan(13)       C +6.25%       7.25 %     12/19/19       12/19/24       6,709       5,035       5,164       1.65  
      (1.00% Floor)                                                          
First Lien Secured Revolving Loan(7) (13)     C +6.25%       7.25 %     12/19/19       12/19/24                   (2 )      
      (1.00% Floor)                                                          
                                      39,176       36,555       36,385       11.63  

 

See notes to consolidated financial statements

 

13

 

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(in thousands)

 

                                              Fair Value  
                                              As A  
    Spread                       Principal/                 Percentage  
    Above     Interest     Acquisition     Maturity     Share     Amortized     Fair     of Net  
Investment Type(1)   Index(2)     Rate(3)     Date(10)     Date     Amount     Cost     Value(11)     Assets  
Department Stores                                                                
Mills Fleet Farm Group, LLC                                                                
First Lien Secured Term Loan       L+ 6.00%       7.00 %       10/24/18         10/24/24         13,543       $   13,292       $   13,272         4.24   %  
      (1.00% Floor)                                                          
Distributors                                                                
Crown Brands, LLC                                                                
Second Lien Secured Term  Loan(20)     L+ 10.50%       12.00 %       12/15/20         01/08/26         4,526         4,420         3,621         1.16    
      (1.50% Floor)                                                          
Second Lien Secured Delayed Draw  Loan(20)     L+ 10.50%       12.00 %       12/15/20         01/08/26         671         671         537         0.17    
      (1.50% Floor)                                                          
                                      5,197       5,091       4,158       1.33  
Diversified Chemicals                                                                
Sklar Holdings, Inc.                                                                
First Lien Secured Term Loan        L+ 6.00%       7.00 %       11/13/19         05/13/23         8,882         8,718         8,834         2.82    
      (1.00% Floor)                                                          
Diversified Support Services                                                                
ImageOne Industries, LLC                                                                
First Lien Secured Term Loan        L+ 10.00%       11.00
(4.00
%
%PIK)
    01/11/18         01/11/23         6,564         6,422         6,564         2.10    
      (1.00% Floor)                                                          
First Lien Secured Revolving  Loan(4)(7)     L+ 10.00%       11.00
(4.00
%
%PIK)
    07/22/19         12/12/22         379         379         379         0.12    
      (1.00% Floor)                                                          
NNA Services, LLC                                                                
First Lien Secured Term Loan        L+ 7.00%       8.50 %       10/16/18         10/16/23         13,353         13,178         13,284         4.25    
      (1.50% Floor)                                                          
                                      20,296       19,979       20,227       6.47  
Education Services                                                                
EducationDynamics, LLC                                                                
First Lien Secured Term Loan        L+ 7.75%       8.75  %       11/26/19         11/26/24         13,649         13,428         13,612         4.35    
      (1.00% Floor)                                                          
Food Retail                                                                
AG Kings Holdings, Inc.                                                                
First Lien Secured Term Loan(4)(8)     P+ 11.00%       16.25
(2.00
%
%PIK)
    8/10/16       08/10/21         21,755         8,612         7,600         2.43    
      (0.75% Floor)                                                          
Superpriority Secured Debtor-In-  Possession Term Loan(4)(18)       L+ 10.00%       11.00   %       08/26/20         02/08/21       14,222       5,663       14,222       4.55  
      (1.00% Floor)                                                          
                                      35,977       14,275       21,822       6.98  
Health Care Facilities                                                                
Epiphany Dermatology                                                                
First Lien Secured Term Loan        L+ 7.50%       8.50   %       12/04/20         12/01/25         3,500         3,414         3,414         1.09    
      (1.00% Floor)                                                          
First Lien Secured Revolving  Loan(7)     L+ 7.50%       8.50   %       12/04/20         12/01/25         —         —         —         —    
      (1.00% Floor)                                                          
First Lien Secured Delayed Draw  Loan(7)          L+ 7.50%       8.50     %         12/04/20           12/01/25           —           —           —           —    
      (1.00% Floor)                                                          
Grupo HIMA San Pablo, Inc.                                                                
First Lien Secured Term Loan A     L+ 9.00%       9.22 %     05/15/19       04/30/19       3,855       3,855       2,613       0.84  
First Lien Secured Term Loan B        L+ 9.00%       10.50   %       02/01/13         04/30/19         13,511         13,511         9,161         2.93    
      (1.50% Floor)                                                          
Second Lien Secured Term Loan(8)        N/A         15.75
(2.00
%
%PIK)
    02/01/13       07/31/18         1,028         1,024         —         —    
                                      21,894       21,804       15,188       4.86  
Health Care Services                                                                
CHS Therapy, LLC                                                                
First Lien Secured Term Loan A        L+ 7.75%       9.25 %       06/14/19       06/14/24         7,422         7,325         7,422         2.37    
      (1.50% Floor)                                                          
First Lien Secured Term Loan C        L+ 7.75%       9.25 %       10/07/20       06/14/24         912         895         895         0.29    
      (1.50% Floor)                                                          

 

See notes to consolidated financial statements

 

14

 

 

 

WHITEHORSE FINANCE, INC.

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(in thousands)

 

 

                           Fair Value 
                           As A 
   Spread           Principal/           Percentage 
   Above  Interest  Acquisition  Maturity  Share   Amortized   Fair   of Net 
Investment Type(1)  Index(2)  Rate(3)    Date(10)  Date  Amount   Cost   Value(11)   Assets 
Ivy Rehab Holdings LLC                                
First Lien Secured Term Loan  L+ 6.75%
  7.75%  12/04/20   12/04/24    8,855   $8,682   $8,682    2.77%
   (1.00% Floor)                             
First Lien Secured Revolving Loan(7)  L+ 6.75%
  7.75%  12/04/20   12/04/25                 
   (1.00% Floor)                             
First Lien Secured Delayed Draw  L+ 6.75%  7.75%  12/04/20   12/04/25                 
Loan(7)  (1.00% Floor)                             
Lab Logistics, LLC                                
First Lien Secured Term Loan  L+ 7.25%
  8.25%  10/16/19   11/19/25    709    693    694    0.22 
   (1.00% Floor)                             
First Lien Secured Delayed Draw
Loan
  L+ 7.25%
  8.25%  10/16/19   09/25/23    5,236    5,209    5,236    1.67 
   (1.00% Floor)                             
PG Dental New Jersey Parent, LLC                                
First Lien Secured Term Loan  L+ 7.75%
  8.75%  11/25/20   11/25/25    16,170    15,813    15,814    5.05 
   (1.00% Floor)                             
First Lien Secured Revolving Loan (7)  L+ 7.75%
  8.75%  11/25/20   11/25/25                 
   (1.00% Floor)                             
                39,304    38,617    38,743    12.37 
Home Furnishings                                
Sure Fit Home Products, LLC                                
First Lien Secured Term Loan(8)    L+ 9.75%
  10.75%  10/26/18   07/13/22    5,229    5,111    4,019    1.28 
   (1.00% Floor)                             
Interactive Media & Services                                
What If Media Group, LLC                                
First Lien Secured Term Loan  L+ 6.50%
  7.50%  10/02/19   10/02/24    12,594    12,405    12,594    4.02 
   (1.00% Floor)                             
Internet & Direct Marketing Retail                                
BBQ Buyer, LLC                                
First Lien Secured Term Loan  L+ 8.00%
  9.50%  08/28/20   08/28/25    10,669    10,421    10,563    3.38 
   (1.50% Floor)                             
                                 
First Lien Secured Revolving Loan(7)  L+ 8.00%
  9.50%  08/28/20   02/28/21            8     
   (1.50% Floor)                             
Luxury Brand Holdings, Inc.                                
First Lien Secured Term Loan  L+ 7.00%