WhiteHorse Finance, Inc. (NASDAQ:WHF) has reported its Q4 2023 earnings, which were in line with expectations. The company’s reported earnings per share (EPS) stood at $0.46, matching the projected EPS of $0.46. The Q4 GAAP net investment income and core net interest income were $10.6 million or $0.456 per share, exceeding the quarterly base dividend of $0.385 per share.
During the quarter, WhiteHorse Finance deployed $56.9 million in gross capital, funding eight new transactions and add-ons to existing portfolio investments. The majority of the new originations were sponsored deals, with an average leverage of approximately 4.3x debt to EBITDA. The company’s portfolio mix at the end of Q4 consisted of approximately two-thirds sponsor deals and one-third non-sponsor deals.
The overall performance of WhiteHorse Finance’s debt portfolio remained stable, with no new credits moved to non-accrual during the quarter. Investments in non-accrual totaled 2% of the total portfolio at fair value, compared to 2.8% at the end of Q3. The company continues to actively monitor its troubled portfolio companies and is working towards improving their performance.
Looking ahead, WhiteHorse Finance acknowledges increased liquidity in the lending market, resulting in more aggressive pricing and leverage from competitors. The company remains cautious in its deal sourcing and focuses on off-the-run and non-sponsor markets, where market terms are comparatively more attractive.
Overall, WhiteHorse Finance’s Q4 2023 earnings report reflects a solid performance in line with expectations, with the company maintaining a vigilant approach to portfolio management and capital deployment.
