In This Article:
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GAAP Net Investment Income (NII): $8 million or $0.34 per share.
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Quarterly Distribution: $0.385 per share.
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NAV per Share: $12.31, a 3.6% decrease from the prior quarter.
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Net Realized and Unrealized Losses: $4.9 million.
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Gross Capital Deployments: $35.4 million.
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Total Repayments and Sales: $46.2 million.
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Weighted Average Effective Yield on Debt Investments: 12.5% at the end of Q4.
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Cash Resources: $27.8 million, including $15.4 million in restricted cash.
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Undrawn Capacity: Approximately $173 million available under the revolving credit facility.
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Asset Coverage Ratio: 180.4% as of December 31, 2024.
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Non-Accrual Investments: 7.2% of the debt portfolio.
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Fee Income: $0.9 million in Q4.
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STRS JV Portfolio Fair Value: $295 million.
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Spill Over Income: Approximately $28.4 million at the end of Q4 2024.
Release Date: March 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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WhiteHorse Finance Inc (NASDAQ:WHF) maintained a high percentage of first lien, senior, and secured debt in its portfolio, accounting for 98.4% of the debt portfolio.
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The company successfully utilized the STRS JV, which continues to provide attractive returns for shareholders.
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WhiteHorse Finance Inc (NASDAQ:WHF) declared a first-quarter distribution of $0.385 per share, marking the 50th consecutive quarterly distribution since its IPO.
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The company has a solid pipeline of about 170 deals, with seven new mandates and three add-ons to existing deals.
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WhiteHorse Finance Inc (NASDAQ:WHF) has approximately $40 million of capacity for new assets on its balance sheet and an additional $40 million in the JV.
Negative Points
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The fourth quarter results were disappointing, with a decline in the investment portfolio due to net realized and unrealized losses.
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Net Asset Value (NAV) per share decreased by approximately 3.6% from the prior quarter.
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The company experienced net realized losses and markdowns totaling $4.9 million, impacting financial performance.
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Non-accrual investments increased to 7.2% of the debt portfolio, up from 6.5% in the previous quarter.
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The weighted average effective yield on income-producing debt investments decreased to 12.5% from 13.1% in the third quarter.
Q & A Highlights
Q: Stuart, do you think there's scope for spreads to widen given the current market uncertainties? A: (Stuart Aronson, CEO) Spreads were stable in Q4 and remain so at the start of 2025. Despite market uncertainties, we haven't seen upward pressure on spreads. A larger economic disruption or a resumption of M&A flow could change this, but currently, the supply-demand balance doesn't support increased pricing.