Q3 2024 WhiteHorse Finance Inc Earnings Call Transcript

Nov 07, 2024 / 04:30PM GMT

Release Date Price: €10.8 (+0.93%)

Transcript 8-K10-Q

Key Points

Positve

WhiteHorse Finance Inc (WHF) reported a GAAP net investment income and core NII of $9.2 million or $0.394 per share, exceeding the quarterly base dividend of $0.385 per share.
The company successfully deployed $51 million in gross capital, with seven new originations and four add-ons to existing investments.
99% of the debt portfolio is first lien, senior secured, providing a strong security position.
The STRS JV continues to provide attractive returns with a total portfolio fair value of $309.8 million and an average unlevered yield of 11.7%.
WhiteHorse Finance Inc (WHF) declared a special distribution of $0.245 per share, in addition to the regular quarterly distribution, reflecting strong spillback income.

Negative

The net asset value (NAV) per share decreased by 5.1% from the prior quarter, impacted by net markdowns totaling $15.9 million.
The company faced significant write-downs on American Crafts and Honors Holdings, with American Crafts losing a major customer and Honors Holdings experiencing industry challenges.
Non-accrual investments increased to 5.6% of the total debt portfolio, up from 3.6% in the previous quarter.
The lending market remains highly competitive with aggressive terms, leading to challenges in deal origination and pricing.
The weighted average effective yield on income-producing debt investments decreased to 13.1% from 13.8% in the previous quarter.

Operator

Good morning. My name is Jamie, and I will be your conference operator today. At this time, I would like to welcome everyone to the WhiteHorse Finance third-quarter 2024 earnings conference call. Our hosts for today's call are Stuart Aronson, Chief Executive Officer; and Joyson Thomas, Chief Financial Officer.

Today's call is being recorded and will be made available for replay beginning at 4:00 PM Eastern Time. The replay dial-in number is (402) 220-6085. No passcode is required. (Operator Instructions)

It is now my pleasure to turn the floor over to Robert Brinberg of Rose & Company. Please go ahead.

Robert Brinberg

Rose & Company - Investor Relations

Thank you, Jamie, and thank you, everyone, for joining us today to discuss WhiteHorse Finance's third quarter 2024 earnings results.

Before we begin, I'd like to remind everyone that certain statements, which are not based on historical facts made during this call, including any statements relating to financial guidance, may be deemed forward-looking statements within the

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