WhiteHorse Finance, Inc. Announces Second Quarter 2024 Earnings Results and Declares Quarterly Distribution of $0.385 Per Share

Core Viewpoint - WhiteHorse Finance reported its financial results for the quarter ended June 30, 2024, highlighting a distribution of $0.385 per share and a cautious investment strategy amid market challenges [1][2]. Financial Performance - Total investment income for the quarter was $23.482 million, a decrease of 7.8% from $25.475 million in the previous quarter [3]. - Total expenses were $14.190 million, down 3.2% from $14.660 million [3]. - Net investment income was $9.292 million, reflecting a 14.1% decline from $10.815 million [3]. - Core net investment income per share decreased to $0.400 from $0.465, a drop of 14.0% [3]. - The company declared a distribution of $0.385 per share, consistent with the previous quarter [3][7]. Investment Portfolio - As of June 30, 2024, the fair value of the investment portfolio was $660.0 million, down 5.4% from $697.9 million [4]. - The portfolio consisted of 125 positions across 72 companies, with a weighted average effective yield of 11.7% on income-producing debt investments [4]. - The average debt investment size was $5.8 million, with 79.2% in first lien secured loans [4]. Investment Activity - During the quarter, WhiteHorse Finance invested $47.4 million in seven new portfolio companies and added $8.4 million to existing companies [5]. - Proceeds from sales and repayments totaled approximately $71.7 million, driven by full repayments from several companies [5]. - The company transferred assets totaling $22.0 million to STRS JV in exchange for cash proceeds [6]. Market Strategy - The CEO noted a cautious stance focusing on credits with positive free cash flow and limited cyclicality, despite aggressive lending market conditions [2]. - The company continues to see opportunities in less competitive areas of the market, maintaining a high pipeline level due to its sourcing model [2].