Q2 2025 WhiteHorse Finance Inc Earnings Call Transcript
Key Points
- WhiteHorse Finance Inc (WHF) successfully completed a CLO term debt securitization, issuing $174 million of debt at favorable interest rates, which is expected to result in cost savings.
- The company's nonaccrual investments improved, decreasing to 4.9% of the debt portfolio from 8.8% in the previous quarter.
- WhiteHorse Finance Inc (WHF) maintained a high percentage of first lien senior secured debt, with 99.3% of the debt portfolio in this category.
- The STRS JV portfolio continues to provide attractive returns, with an average effective yield of 10.6% and leverage increasing to 1.16 times.
- The company declared a consistent third-quarter distribution of $0.385 per share, marking the 52nd consecutive quarterly distribution since its IPO.
- WhiteHorse Finance Inc (WHF) reported a decrease in NAV per share by 2.4% due to net realized and unrealized losses totaling $4.3 million.
- The company's GAAP net investment income and core NII decreased to $6.6 million, falling short of the quarterly distribution of $0.385 per share.
- The weighted average effective yield on income-producing debt investments decreased to 11.9% from 12.1% in the previous quarter.
- The overall sourcing and pipeline were impacted by muted M&A activity, resulting in a lower than normal pipeline for this time of the year.
- The portfolio experienced net write-downs of $3.6 million, primarily due to write-downs in Honors Holdings and Aspect Software.
Good afternoon, everyone. My name is Bo and I will be your conference operator today. At this time, I would like to welcome everyone to the WhiteHorse Finance second quarter 2025 earnings conference call. Our hosts for today 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 today. The replay dial-in number is (402) 220-6986, no pass code is required. (Operator Instructions)
It is now my pleasure to turn the floor over to Robert Brinberg of Rose & Company. Please go ahead, sir.
Thank you, Bo, and thank you, everyone, for joining us today to discuss WhiteHorse Finance's Second 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 statements within the meaning of
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