In This Article:
-
GAAP Net Investment Income (NII): $9.3 million or $0.40 per share for Q2 2024.
-
Core NII: $9.3 million or $0.40 per share, down from $10.8 million or $0.465 per share in Q1 2024.
-
Net Asset Value (NAV) per Share: $13.45, a 0.4% decrease from the prior quarter.
-
Gross Capital Deployments: $55.8 million in Q2 2024.
-
Total Repayments and Sales: $71.7 million, resulting in net repayments of $16.1 million.
-
Weighted Average Effective Yield: 13.8% on income-producing debt investments at the end of Q2 2024.
-
STRS JV Portfolio Fair Value: $324.8 million at the end of Q2 2024.
-
Cash Resources: Approximately $21.8 million at the end of Q2 2024.
-
Net Effective Debt-to-Equity Ratio: 1.09 times, down from 1.19 times in the prior quarter.
-
Third-Quarter Distribution: $0.385 per share, consistent with the prior quarter.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
WhiteHorse Finance Inc (NASDAQ:WHF) reported a GAAP net investment income and core NII of $9.3 million or $0.40 per share, exceeding the quarterly base dividend of $0.385 per share.
-
The company maintained a high percentage of first lien, senior secured debt in its portfolio, with 99% of the debt portfolio being first lien.
-
The STRS JV continues to be accretive, generating investment income of approximately $3.9 million in Q2, and providing a mid-teens return on equity.
-
WhiteHorse Finance Inc (NASDAQ:WHF) has approximately $60 million of capacity for new assets on the BDC balance sheet, with additional capacity in the JV.
-
The company has a strong origination pipeline with 23 professionals across 11 regional markets, allowing for conservative deal selection and focus on non-sponsor market opportunities.
Negative Points
-
Net Asset Value (NAV) per share decreased by 0.4% from the prior quarter, impacted by net markdowns in the portfolio totaling $1.5 million.
-
The portfolio experienced elevated repayment activity, resulting in net repayments of $16.1 million, which contributed to a softer quarter.
-
Nonaccrual investments increased to 4.2% of the total debt portfolio at fair value, up from 1.3% in Q1, largely due to issues with Honors Holdings.
-
The company is facing a challenging market environment with aggressive lending conditions, particularly in the upper mid-cap and large-cap markets.
-
There is a noted slowdown in economic activity, with signs of weakening consumer demand and potential for continued refinancing pressure due to low interest spreads.