WhiteHorse Finance reduces loan facility commitment to $100 million

Published 01/07/2025, 22:50
WhiteHorse Finance reduces loan facility commitment to $100 million

WhiteHorse Finance , Inc. (NASDAQ:WHF), a business development company with a market capitalization of $205 million and currently trading near its 52-week low of $8.82, reported that its wholly owned subsidiary, WhiteHorse Finance Credit I, LLC, entered into an amendment to its existing loan agreement with JPMorgan Chase (NYSE:JPM) Bank and other parties. The amendment, executed Friday, changes several terms of the Fifth Amended and Restated Loan Agreement.

According to a statement based on a recent SEC filing, the Eleventh Amendment to the loan agreement moves the "Optional Commitment Reduction Date" forward from July 17, 2025, to June 23, 2025. On this new date, the financing commitments available to WhiteHorse Credit and its lenders are reduced from $235 million to $100 million.

Additionally, the amendment removes WhiteHorse Credit’s right to prepay outstanding advances in whole or in part on the Optional Commitment Reduction Date. According to InvestingPro data, the company’s short-term obligations currently exceed its liquid assets, with a current ratio of 0.37, making these financing arrangements particularly significant for investors.

The loan agreement, originally dated April 28, 2021, has been amended multiple times. The latest amendment involves JPMorgan Chase Bank, National Association, as lender and administrative agent; Citibank, N.A., as collateral agent and securities intermediary; WhiteHorse Finance, Inc., as portfolio manager; and Virtus Group LP, as collateral administrator.

WhiteHorse Finance, Inc. is incorporated in Delaware and is based in Miami, Florida. Its common stock and 7.875% notes due 2028 are listed on the Nasdaq Global Select Market under the symbols WHF and WHFCL, respectively. The company maintains a notable 17.46% dividend yield and has maintained dividend payments for 14 consecutive years, despite experiencing a 16% revenue decline in the last twelve months. For detailed analysis and additional insights, investors can access the comprehensive research report available on InvestingPro, which covers over 1,400 US stocks.

The company stated that the summary of modifications is qualified in its entirety by reference to the full text of the amendment, which was filed as an exhibit to the SEC report. All information is based on a press release statement and the company’s SEC filing.

In other recent news, WhiteHorse Finance reported its first-quarter 2025 earnings, revealing a net investment income of $0.29 per share, which did not meet the consensus estimate of $0.33. Revenue also fell short of expectations, coming in at $18.8 million compared to the forecasted $20.17 million. The company’s net asset value per share decreased by 1.6% to $12.11, reflecting a challenging economic environment. Despite these results, WhiteHorse Finance maintained its regular quarterly distribution of $0.385 per share for the second quarter of 2025. JPMorgan reiterated its Underweight rating on WhiteHorse Finance, maintaining a $9.00 price target, citing ongoing concerns about the company’s earnings capability and dividend coverage. The firm noted that investor focus is expected to remain on dividend coverage through net investment income and credit trends. Challenges in the M&A market and nonaccrual investments, which affect 8.8% of the debt portfolio, continue to pose risks for WhiteHorse Finance. The company is actively working on improving asset quality, with efforts to address nonaccrual investments and manage tariff risks.

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