Investment Advisory Agreement - The Investment Advisory Agreement was amended and restated on November 1, 2023, and will remain in effect annually if approved by the board of directors or a majority of outstanding voting securities[89]. - The board of directors unanimously approved the amendment based on factors including the quality of advisory services and comparative fee structures with similar companies[91]. - The investment advisory fee rates were deemed reasonable in relation to the services provided, with expectations for similar reviews in future amendments[93]. - The Investment Advisory Agreement allows for termination by either party with a 60-day written notice, ensuring flexibility in management relationships[89]. - The board of directors considered the anticipated profitability of the relationship with the Investment Adviser as a key factor in their decision-making process[92]. Administrative Services - WhiteHorse Administration provides essential administrative services, including financial record maintenance and NAV determination, under an agreement renewed on November 1, 2023[94]. - The company may receive fees for managerial assistance provided to portfolio companies through WhiteHorse Administration[108]. Investment Strategy and Compliance - The company may invest up to 100% of its assets in privately negotiated transactions, potentially classifying it as an "underwriter" under the Securities Act[102]. - The company has claimed an exclusion from the definition of "commodity pool operator," affirming this status through the fiscal year ending December 31, 2024[103]. - The company must ensure that qualifying assets represent at least 70% of total assets to comply with the 1940 Act[105]. - The company intends to continue qualifying as a RIC by distributing at least 90% of its investment company taxable income annually[130]. - The company must qualify as a RIC and satisfy the Annual Distribution Requirement to maintain its tax status[134]. - At least 90% of the company's gross income must derive from specific sources, including dividends and interest, to meet the 90% Income Test[134]. - The company is required to diversify its holdings, ensuring that no more than 25% of its assets are invested in securities of a single issuer[135]. - The company must distribute dividends to avoid a 4% nondeductible U.S. federal excise tax on undistributed income[132]. Financial Risks and Market Conditions - Rising interest rates are expected to increase the company's interest income, as most of its portfolio bears interest at variable rates[211]. - The company is exposed to risks from inflation, which has increased costs for its portfolio companies, potentially affecting their ability to pay interest and principal[216]. - The company engages in hedging transactions to mitigate risks associated with currency and interest rate fluctuations[217]. - The company may face tax implications if it fails to qualify as a RIC, including being taxed at regular corporate rates[147]. - The company’s portfolio primarily consists of fixed and floating rate investments, which are subject to market price fluctuations[213]. - The company may experience fluctuations in quarterly results due to various factors, including interest rates and default rates on securities[251]. - Economic downturns could lead to increased non-performing assets and decreased portfolio value, adversely affecting revenues and net income[290]. Portfolio Composition and Investment Risks - The company primarily invests in below investment grade securities, which are viewed as speculative investments due to concerns regarding the issuer's capacity to pay interest and repay principal[271]. - The company’s portfolio may be concentrated in a limited number of portfolio companies and industries, increasing the risk of significant loss if any of these companies defaults[282]. - The company invests in "unitranche" senior secured loans, which combine senior secured and subordinated financing, generally in a first-lien position, providing a blended yield between senior secured and subordinated debt[273]. - The company may hold debt securities and loans of leveraged companies that could enter bankruptcy proceedings, posing significant risks to investment returns[285]. - The company’s investments in mezzanine loans are generally subordinated to senior loans and may involve above-average risk and volatility[275]. - Portfolio companies may face financial distress, leading to uncertainty regarding the satisfaction of distressed debt, which could result in losses for the company[288]. - Rising interest rates may hinder portfolio companies' ability to repay loans, increasing the risk of defaults and negatively impacting the company's financial condition[289]. Regulatory and Compliance Challenges - Changes in laws or regulations may require the company to alter its business strategy, potentially incurring significant compliance costs[252]. - The company incurs significant expenditures to comply with Section 404 of the Sarbanes-Oxley Act, which may negatively impact financial performance and ability to make distributions[267]. - The company is restricted from participating in certain transactions with affiliates without prior approval, limiting investment opportunities[238]. - The company has adopted compliance policies to prevent violations of federal securities laws and reviews them annually[112]. Debt and Financing - The company must meet a borrowing base test of less than or equal to 60% and a market value test of at least 167.5% to make new borrowings under the Credit Facility[322]. - An event of default under the Credit Facility could prevent the company from making distributions to stockholders, adversely affecting its ability to maintain RIC status[323]. - The Private Notes and Public Notes are unsecured and effectively subordinated to any secured indebtedness incurred by the company or its subsidiaries[327]. - The company may not receive cash from WhiteHorse Credit if it does not generate sufficient cash to make distributions, impacting its ability to distribute to stockholders[319]. - The Credit Facility restricts the portfolio manager's ability to purchase and sell investments, potentially impairing performance[324]. - The company may lose management control of WhiteHorse Credit if an event of default occurs, which could lead to performance issues[325]. Valuation and Conflicts of Interest - The valuation process for non-publicly traded securities may create conflicts of interest, as the Investment Adviser determines fair value[232]. - The fair value of portfolio investments is based on unobservable inputs and significant management judgment, which may lead to material differences from actual realizable values[245]. - The company may face conflicts of interest due to arrangements with H.I.G. Capital and the Investment Committee, which may not align with stockholder interests[222]. - The allocation policy for investment opportunities will be periodically approved by the Investment Adviser and reviewed by independent directors[239]. Indenture and Note Risks - The indenture for the 4.000% 2026 Notes offers limited protection, allowing the company to incur additional indebtedness without restrictions[333]. - The company may face risks related to credit or market value deterioration in its portfolio companies, which could harm operating results[318]. - The 7.875% 2028 Notes indenture offers limited protection and does not restrict the company from incurring additional debt or engaging in corporate transactions[339]. - Upon a change in control, holders of Private Notes may require prepayment at 100% of the aggregate principal amount plus accrued interest, which could adversely affect the company's financial condition[344]. - The company may choose to prepay Private Notes when prevailing interest rates are low, specifically on or after set prepayment dates[345].

Financial Data and Key Metrics Changes - Q4 GAAP net investment income and core net interest income was $10.6 million or $0.456 per share, a slight decline from Q3's $10.8 million or $0.465 per share [7][39] - NAV per share at the end of Q4 was $13.63, representing a 1.7% decrease from the prior quarter, impacted by a $6.8 million net mark-to-market in the portfolio [8][15] - The weighted average effective yield on income-producing debt investments increased to 13.7% as of the end of Q4, up from 13.6% at the end of Q3 [16] Business Line Data and Key Metrics Changes - Gross capital deployments in Q4 totaled $56.9 million, with $54.1 million funding eight new transactions, marking the highest level of origination activity in 2023 [9] - Total repayments and sales were $34.9 million, primarily driven by two complete and two partial realizations [12] - The fair value of the investment portfolio was $696.2 million at the end of Q4, down from $706.8 million at the end of the previous quarter [15] Market Data and Key Metrics Changes - The lending market in Q4 was characterized by increased liquidity, with pricing for sponsor deals falling by about 50 basis points on average [25] - Loan-to-value ratios increased, with lower mid-market deals now at 55% and mid-market deals at 60% to 65% [28] - The non-sponsor sector remains stable with pricing at SOFR 650 to 850 and leverage multiples of 3x to 4.5x [28] Company Strategy and Development Direction - The company is focusing on off-the-run and non-sponsor markets where terms remain more attractive, while being cautious in deal sourcing [29][36] - The company aims to maintain a conservative credit outlook, with a focus on non-cyclical or light cyclical borrowers [19][67] - The company has a 3-tier sourcing architecture that provides differentiated capabilities and access to attractive deals [32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about market conditions, anticipating a pickup in M&A activity driven by aggressive debt markets [36][78] - The company does not foresee a recession but expects slower growth through 2024 and into 2025 due to higher rates [30] - Management remains vigilant in monitoring the portfolio, noting that no new credits were moved to non-accrual during the quarter [20] Other Important Information - The Board approved an increase in the quarterly base dividend to $0.385 per share, representing an 8.5% increase compared to the initial dividend at IPO [37][45] - The company has approximately $50 million of capacity for new assets at the target leverage range, with the JV having about $40 million of capacity [34][58] - The company reported a net increase in net assets resulting from operations of $3.4 million [41] Q&A Session Summary Question: Are you comfortable in the BDC's ability to potentially replace all these repayments with direct origination deal flow? - Management believes that repayments will be mitigated by call protection obtained in previous years, and they expect sufficient volume to replace repaid deals [50][52] Question: What is driving the repayment activity? - Repayment activity is primarily driven by M&A activity and some deals maturing, with management feeling confident about refinancing performing assets [55][56] Question: How is the pipeline developing in terms of new versus add-on opportunities? - The pipeline consists of about five new platforms and seven add-on opportunities, with a focus on non-sponsor deals priced above the current market [64][67] Question: What are you seeing in the non-sponsored space regarding the use of capital? - Non-sponsor deals are primarily growth loans targeted for organic growth or M&A activity, with no dividends involved [80]

Exhibit 99.1 WhiteHorse Finance, Inc. Announces Fourth Quarter and Full Year 2023 Earnings Results and Declares Quarterly Distribution of $0.385 Per Share NEW YORK, February 29, 2024 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the year ended December 31, 2023. In addition, the Company's board of directors has declared a distribution of $0.385 per share with respect to the quarter ending March 31, 2024. The distribut ...

WhiteHorse Finance, Inc. (NASDAQ:WHF) Q3 2023 Results Conference Call November 9, 2023 2:00 PM ET Company Participants Stuart Aronson - CEO Joyson Thomas - CFO Conference Call Participants Jacob Moeller - Rose & Company Melissa Wedel - JP Morgan Mickey Schleien - Ladenburg Robert Dodd - Raymond James Operator Good afternoon. My name is Britney, and I will be your conference operator today. At this time, I would like to welcome everyone to the WhiteHorse Finance Third Quarter 2023 Earnings Conference Call. ...

Investment Income and Expenses - Total investment income for Q3 2023 was $25.9 million, an increase of $4.3 million (20%) compared to Q3 2022[315]. - Net investment income for Q3 2023 was $10.8 million, up $1.0 million (10.2%) from Q3 2022[316]. - Total expenses for Q3 2023 were $15.1 million, an increase of $3.3 million (27.7%) compared to Q3 2022[315]. - Interest and payment-in-kind income rose by $3.922 million (22.8%) for the three months ended September 30, 2023, totaling $21.138 million, primarily due to increased base rates[317]. - Operating expenses for the three months ended September 30, 2023, were $15.055 million, an increase of $3.265 million (27.7%) from $11.790 million in 2022[320]. - Interest expense increased by $1.927 million (34.2%) for the three months ended September 30, 2023, totaling $7.559 million, primarily due to higher weighted average interest rates[320]. - Performance-based incentive fees increased by $1.676 million (163.2%) for the three months ended September 30, 2023, totaling $2.703 million, driven by higher pre-incentive fee net investment income[323]. Investment Gains and Losses - Net realized gains on investments for Q3 2023 were $211, compared to a loss of $15.9 million in Q3 2022[315]. - The net change in unrealized losses on investments for Q3 2023 was $5.4 million, an improvement from a loss of $6.2 million in Q3 2022[315]. - Total net realized losses on investments for the three months ended September 30, 2023, were $(0.3) million, compared to net realized gains of $0.2 million in 2022[327]. - Gross unrealized depreciation on investments for the three months ended September 30, 2023, was $(10.3) million, compared to $(9.2) million in 2022[330]. Assets and Investments - For the nine months ended September 30, 2023, total investment income was $77.6 million, an increase of $16.0 million (25.9%) from the same period in 2022[315]. - As of September 30, 2023, STRS JV had total assets of $329.7 million, up from $305.3 million as of December 31, 2022[340]. - The total investments in STRS JV increased to $312.95 million as of September 30, 2023, from $284.26 million as of December 31, 2022, reflecting a growth of approximately 10.1%[346]. - The investment portfolio consisted of senior secured loans across 109 positions in 69 companies, with an aggregate fair value of $706.8 million as of September 30, 2023[380]. - The company had a fair value of loans amounting to $564.3 million as of September 30, 2023[369]. - The average investment size in the portfolio was $5.6 million, with investment sizes ranging from zero to $21.8 million[380]. Borrowings and Credit Facilities - The company had approximately $126.4 million undrawn and available to be drawn under the Credit Facility as of September 30, 2023[338]. - The Credit Facility allows for borrowings up to $335.0 million, with an accordion feature permitting expansion up to $375.0 million as of September 30, 2023[362]. - The required minimum outstanding borrowings under the Credit Facility were $234.5 million as of September 30, 2023[362]. - As of September 30, 2023, there were $208.6 million in outstanding borrowings under the Credit Facility, with approximately $126.4 million available to be drawn[369]. Distributions and Shareholder Returns - Total distributions declared for the three months ended September 30, 2023, were $8.6 million ($0.37 per share), compared to $8.3 million ($0.355 per share) in the same period of 2022[391]. - For the nine months ended September 30, 2023, total distributions were $27.1 million ($1.165 per share), up from $24.7 million ($1.065 per share) in 2022[391]. - The company estimates that $27.1 million of the distributions for the nine months ended September 30, 2023, included ordinary income for tax purposes[392]. - The company has adopted a dividend reinvestment plan (DRIP) for common stockholders, allowing cash distributions to be automatically reinvested unless opted out[394]. Valuation and Fair Value - The valuation of investments is primarily based on bid quotations from unaffiliated market makers or independent third-party pricing services[405]. - The fair value of investments is categorized into three levels based on the transparency of inputs used for measurement, with Level 1 being quoted prices in active markets[411][412]. - Fair value for investments is determined using various methodologies, including discounted cash flow analysis and market prices, with significant inputs assessed based on their relevance[415]. - The assessment of fair value inputs requires judgment and considers factors specific to each financial instrument[414]. Market Risks and Interest Rates - The company is subject to financial market risks, particularly from changes in interest rates, which may adversely affect net investment income and stock value[422]. - The company may hedge against interest rate fluctuations using standard hedging instruments, although this may limit benefits from lower interest rates[429]. - As of September 30, 2023, the company reported a potential annualized impact of a 300 basis point increase in interest rates, resulting in a net decrease of $13.562 million in income[425]. - Nearly all performing floating rate investments in the portfolio had interest rate floors, limiting benefits from interest rate increases until they exceed the floor[426]. Other Financial Activities - The company entered into an amended investment advisory agreement effective January 1, 2024, reducing the base management fee from 2.00% to 1.75%[313]. - The company contributed three additional assets of senior secured debt facilities to the STRS JV from October 1, 2023, to November 9, 2023[313]. - The company recorded a realized loss of $9,000 on forward currency contracts for the three months ended September 30, 2023, while unrealized appreciation was $31,000[430]. - Interest income is accrued only if collectability is expected, with loans placed on non-accrual status upon default[418]. - The company may receive origination fees, which are deferred and accreted into income over the loan term[420]. - Interest expense is recorded on an accrual basis, with certain legal and valuation expenses recognized as incurred[419].

WhiteHorse Finance (NASDAQ:WHF) Q2 2023 Earnings Conference Call August 8, 2023 9:00 AM ET Company Participants Jacob Moeller – Rose & Company Stuart Aronson – Chief Executive Officer Joyson Thomas – Chief Financial Officer Conference Call Participants Sean-Paul Adams – Raymond James Mitchel Penn – Oppenheimer Erik Zwick – Hovde Group Operator Good morning. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the WhiteHorse Finance Second Quarter 2 ...

| --- | --- | |-----------------------------------------------------------------------------|-------| | | | | | | | | | | | | | WhiteHorse Finance, Inc. Earnings Presentation Quarter Ended June 30, 2023 | | | | | NASDAQ: WHF (Common Stock) Important Information and Forward Looking Statements 1 References in this presentation to "WHF", "we", "us", "our" and "the Company" refer to WhiteHorse Finance, Inc. This presentation and the information and views included herein do not constitute investment advice, or a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission file number: 814-00967 WHITEHORSE FINANCE, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 45-42 ...

WhiteHorse Finance, Inc. (NASDAQ:WHF) Q1 2023 Earnings Conference Call May 9, 2023 1:00 PM ET Company Participants Robert Brinberg - Rose & Co. Stuart Aronson - CEO & Director Joyson Thomas - CFO & Principal Accounting Officer Conference Call Participants Mickey Schleien - Ladenburg Thalmann & Co. Robert Dodd - Raymond James & Associates Erik Zwick - Hovde Group Bryce Rowe - B. Riley Securities Melissa Wedel - JPMorgan Chase & Co. Operator Good afternoon. My name is Shelby, and I will be your conference ope ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission file number: 814-00967 WHITEHORSE FINANCE, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 45-4 ...