Q3 2025 WhiteHorse Finance Inc Earnings Call Transcript
Key Points
- WhiteHorse Finance Inc (WHF) has implemented a share buyback program of up to $15 million, which is expected to be accretive given the current discount of the company's stock price relative to its book value.
- The advisor has voluntarily agreed to reduce the incentive fee on net investment income from 20% to 17.5% for the next two fiscal quarters, providing additional financial support for quarterly distributions to shareholders.
- The company has a strong focus on non-sponsor markets, which offer better risk-adjusted returns and less competition compared to sponsor markets.
- Non-accrual investments have decreased, representing 2.7% of the debt portfolio at fair value, an improvement from 4.9% in the prior quarter.
- The STRS JV portfolio continues to provide attractive returns, with an aggregate fair value of $341.5 million and an average effective yield of 10.3%.
- WhiteHorse Finance Inc (WHF) reported a decrease in NAV per share to $11.41, representing a 3.6% decline from the prior quarter.
- The company experienced net realized and unrealized losses totaling $6.7 million in Q3, impacting NAV per share.
- Q3 GAAP net investment income and core NII decreased to $6.1 million or $0.26 per share, compared to $6.6 million or $0.28 per share in Q2.
- The weighted average effective yield on income-producing debt investments decreased to 11.6% from 11.9% in Q2, due to lower spreads and base rates.
- The company has reset its quarterly base distribution to $0.25 per share, reflecting challenging market conditions and lower earnings power.
(Operator Instructions) Good afternoon. My name is Chloe, 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 402-220-2572. No passcode required. (Operator Instructions)
It is now my pleasure to turn the floor over to Robert Brinberg of Rose & Company. Please go ahead.
Thank you, Chloe, and thank you everyone for joining us today to discuss WhiteHorse Finance's third-quarter 2025 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
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