In This Article:
-
GAAP Net Investment Income (NII): $9.2 million or $0.394 per share.
-
Core NII: $9.2 million or $0.394 per share.
-
Net Asset Value (NAV) per Share: $12.77, a 5.1% decrease from the prior quarter.
-
Net Markdowns on Portfolio: $15.9 million.
-
Gross Capital Deployments: $51 million.
-
Total Repayments and Sales: $30.2 million.
-
Net Deployments: $20.8 million.
-
Weighted Average Effective Yield on Debt Investments: 13.1% at the end of Q3.
-
Non-Accrual Investments: 5.6% of the total debt portfolio.
-
Cash Resources: Approximately $20.7 million at the end of Q3.
-
Undrawn Capacity: Approximately $173 million under the revolving credit facility.
-
Net Effective Debt-to-Equity Ratio: 1.13x.
-
Fourth Quarter Distribution: $0.385 per share.
-
Special Distribution: $0.245 per share.
Release Date: November 07, 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 $9.2 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 (NASDAQ:WHF) declared a special distribution of $0.245 per share, in addition to the regular quarterly distribution, reflecting strong spillback income.
Negative Points
-
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.
Q & A Highlights
Q: Can you elaborate on the expected deal environment for the fourth quarter and its impact on portfolio leverage? A: Stuart Aronson, CEO: We anticipate that the fourth quarter may not be as robust as usual, but based on current mandates, we expect to balance repayment activity with new deals. Therefore, we don't foresee a decrease in leverage. We have significant undeployed capacity, both on the BDC balance sheet and in the JV, but we may not fully utilize this capacity in Q4.