WhiteHorse Finance, Inc.

Previous wording

The information contained in this section should be read in conjunction with our Consolidated Financial Statements appearing elsewhere in this quarterly report on Form 10-Q. In this quarterly report on Form 10-Q, the “Company”, “we”, “us”, “our” and “WhiteHorse Finance” refer to WhiteHorse Finance, Inc. and its consolidated subsidiaries.

Current wording

The information contained in this section should be read in conjunction with our Consolidated Financial Statements appearing elsewhere in this quarterly report on Form 10-Q. In this quarterly report on Form 10-Q, the “Company”, “we”, “us”, “our” and “WhiteHorse Finance” refer to WhiteHorse Finance, Inc. and its consolidated subsidiaries, and "WhiteHorse Advisers" refers to H.I.G. WhiteHorse Advisers, LLC, our investment adviser.

Previous wording

We use words such as “may,” “might,” “will,” “intends,” “should,” “could,” “can,” “would,” “expects,” “believes,” “estimates,” “anticipates,” “predicts,” “potential,” “plan” and similar expressions to identify forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements for any reason, including the factors set forth in “Item 1A-Risk Factors” in our annual report on Form 10-K and elsewhere in this quarterly report on Form 10-Q.

Current wording

We use words such as “may,” “might,” “will,” “intends,” “should,” “could,” “can,” “would,” “expects,” “believes,” “estimates,” “anticipates,” “predicts,” “potential,” “plan” and similar expressions to identify forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements for any reason,

Previous wording

Our investment activities are managed by WhiteHorse Advisers and are supervised by our board of directors, a majority of whom are independent of us, WhiteHorse Advisers and its affiliates. Under the Investment Advisory Agreement, we have agreed to pay WhiteHorse Advisers an annual base management fee based on our average

Current wording

Our investment activities are managed by WhiteHorse Advisers and are supervised by our board of directors, a majority of whom are independent of us, WhiteHorse Advisers and its affiliates. Under the second amended and restated investment advisory agreement, which was executed by the Company on February 22, 2024 (the “Investment Advisory Agreement”), we have agreed to pay WhiteHorse Advisers an annual base management fee based on our average consolidated gross assets as well as an incentive fee based on our investment performance. Under our administration agreement (the "Administration Agreement") with H.I.G. WhiteHorse Administration ("WhiteHorse Administration"),

Previous wording

consolidated gross assets as well as an incentive fee based on our investment performance. Under our Administration Agreement, we have agreed to reimburse WhiteHorse Administration for our allocable portion (subject to the review and approval of our independent directors) of overhead and other expenses incurred by WhiteHorse Administration in performing its obligations under the Administration Agreement.

Current wording

we have agreed to reimburse WhiteHorse Administration for our allocable portion (subject to the review and approval of our independent directors) of overhead and other expenses incurred by WhiteHorse Administration in performing its obligations under the Administration Agreement.

Previous wording

On November 10, 2025, WhiteHorse Advisers voluntarily agreed to waive and reduce the incentive fee on net investment income from its stated annual rate of 20.00% to 17.50% for the next two fiscal quarters ending December 31, 2025 and March 31, 2026, respectively.

Current wording

On May 7, 2026, WhiteHorse Advisers voluntarily agreed to waive and reduce the incentive fee on net investment income from its stated annual rate of 20.00% to 17.50% for the next fiscal quarter ending June 30, 2026.

Previous wording

Comparison of the Three and Nine Months Ended September 30, 2025 and September 30, 2024

Current wording

Comparison of the Three Months Ended March 31, 2026 and March 31, 2025

Previous wording

Set forth below are the consolidated results of operations for the three and nine months ended September 30, 2025 and 2024:

Current wording

Set forth below are the consolidated results of operations for the three months ended March 31, 2026 and 2025:

Previous wording

Consolidated operating results for the three and nine months ended September 30, 2025 and 2024 are as follows:

Current wording

Consolidated operating results for the three months ended March 31, 2026 and 2025 are as follows:

Previous wording

Net investment income for the three and nine months ended September 30, 2025 totaled $6.1 million and $19.5 million, respectively. Net investment income for the three and nine months ended September 30, 2024 totaled $9.2 million and $29.3 million, respectively. Net investment income decreased by $3.1 million and $9.8 million for the three and nine months ended September 30, 2025 from the three and nine months ended September 30, 2024, as described below under “Investment Income” and “Operating Expenses.”

Current wording

Net investment income for the three months ended March 31, 2026 totaled $5.6 million. Net investment income for the three months ended March 31, 2025 totaled $6.8 million. Net investment income decreased by $1.2 million for the three months ended March 31, 2026 from the three months ended March 31, 2025, as described below under “Investment Income” and “Operating Expenses.”

Previous wording

The following table summarizes our investment income for the three and nine months ended September 30, 2025 and 2024:

Current wording

The following table summarizes our investment income for the three months ended March 31, 2026 and 2025:

Previous wording

Interest income other than PIK income, decreased $2.8 million and $10.2 million for the three and nine months ended September 30, 2025 from the three and nine months ended September 30,2024, primarily attributable to lower yields, investments placed on non-accrual status and lower portfolio size. For the three and nine months ended September 30, 2025, the weighted average size of the debt portfolio, excluding STRS JV, andthe weighted average cash yield on income producing investments, excluding STRS JV, was $495.0 million and $531.8 million, and 9.9% and 9.3%, respectively. For the three and nine months ended September 30, 2024, the weighted average size of the debt portfolio, excluding STRS JV, and theweighted average cash yield on income producing investments, excluding STRS JV, was $567.7 million and $590.2 million and 10.3% and 10.7% respectively. During the the three months ended June 30, 2024 and three months ended September 30, 2024, the Honors Holdings, LLC (d/b/a Orange Theory) and Telestream Holdings Corporation investments were placed on non-accrual status, respectively.

Current wording

Interest income other than PIK income, decreased $2.7 million for the three months ended March 31, 2026 from the three months ended March 31,2025, primarily attributable to lower yields, investments placed on non-accrual status and lower portfolio size. For the three months ended March 31, 2026, the weighted average size of the debt portfolio, excluding STRS JV, andthe weighted average cash yield on income producing investments, excluding STRS JV, was $443.8 million and 9.0%, respectively. For the three months ended March 31, 2025, the weighted average size of the debt portfolio, excluding STRS JV, and theweighted average cash yield on income producing investments, excluding STRS JV, was $568.5 million and 9.0% respectively.

Previous wording

We may invest in loans that contain a PIK interest rate provision where PIK interest is accrued at the contractual rates and added to loan principal on the reset dates to the extent such amounts are expected to be collected. For the three and nine months ended September 30,2025, PIK income as a percentage of total investment income was 2.4% and 3.2%, respectively. For the three and nine months ended September 30,2024, PIK income as a percentage of total investment income was 9.6% and 8.4%, respectively.

Current wording

We may invest in loans that contain a PIK interest rate provision where PIK interest is accrued at the contractual rates and added to loan principal on the reset dates to the extent such amounts are expected to be collected. For the three months ended March 31,2026, PIK income as a percentage of total investment income was 3.9%. For the three months ended March 31, 2025, PIK income as a percentage of total investment income was 3.7%.

Previous wording

Fee and dividend income decreased by $0.1 million for the three months ended September 30, 2025 from the three months ended September 30, 2024. We expect to generate some level of non-recurring fee income during most quarters from prepayments, amendments and other sources. For the three and nine months ended September 30, 2025, we earned non-recurring fee income of $0.1 million and $1.1 million, respectively. For the three and nine months ended September 30, 2024, we earned non-recurring fee income of $0.2 million and $1.0 million, respectively.

Current wording

Fee and dividend income decreased by $0.1 million for the three months ended March 31, 2026 from the three months ended March 31, 2025. We expect to generate some level of non-recurring fee income during most quarters from prepayments, amendments and other sources. For the three months ended March 31, 2026, we earned non-recurring fee income of $0.3 million. For the three months ended March 31, 2025, we earned non-recurring fee income of $0.4 million.

Previous wording

Interest and dividend income from STRS JV decreased by $0.5 million and $2.1 million for the three and nine months ended September 30, 2025 from the the three months ended September 30, 2024, primarily attributable toa decreasein base rates and portfolio yields.

Current wording

Interest and dividend income from STRS JV decreased by $0.1 million for the three months ended March 31, 2026 from the three months ended March 31, 2025, primarily attributable toa decreasein base rates and portfolio yields, partially offset by a larger investment portfolio.

Previous wording

The following table summarizes our expenses for the three and nine months ended September 30, 2025 and 2024:

Current wording

The following table summarizes our expenses for the three months ended March 31, 2026 and 2025:

Previous wording

Interest expense decreased by $1.1 million and $3.3 million for the three and nine months ended September 30, 2025 from the three and nine months ended September 30, 2024, primarily due to lower weighted average borrowing base and weighted average interest rate. For the three and nine months ended September 30, 2025, the weighted average outstanding borrowings were $367.6 million and $369.6 million at a weighted average interest rate of 5.54% and 5.70%, respectively. For the three and nine months ended September 30, 2024, the weighted average outstanding borrowings were $370.3 million and $384.7 million at a weighted average interest rate of 6.36% and 6.46%, respectively.

Current wording

Interest expense decreased by $1.2 million for the three months ended March 31, 2026 from the three months ended March 31, 2025, primarily due to lower weighted average borrowing base and weighted average interest rate. For the three months ended March 31, 2026, the weighted average outstanding borrowings were $328.5 million at a weighted average interest rate of 5.35%. For the three months ended March 31, 2025, the weighted average outstanding borrowings were $366.5 million at a weighted average interest rate of 5.77%.

Previous wording

Base management fees decreased by $0.2 million and $0.7 million for the three and nine months ended September 30, 2025 from the three months ended September 30, 2024, primarily due to lower gross assets.

Current wording

Base management fees decreased by $0.3 million for the three months ended March 31, 2026 from the three months ended March 31, 2025, primarily due to lower gross assets.

Previous wording

Performance-based incentive fees decreased by $0.8 million and $2.4 million for the three and nine months ended September 30, 2025 from the three and nine months ended September 30, 2024, primarily due to lower pre-incentive fee net investment income. For the three and nine months ended September 30, 2025 and 2024, there were no capital gains incentive fee expenses incurred.

Current wording

Performance-based incentive fees decreased by $0.5 million for the three months ended March 31, 2026 from the three months ended March 31, 2025, primarily due to lower pre-incentive fee net investment income. For the three months ended March 31, 2026, the Company recognized an irrevocable fee waiver of $0.2 million. For the three months ended March 31, 2026 and 2025, there were no capital gains incentive fee expenses incurred.

Previous wording

Excise tax was $0.2 million and $0.5 million for the three and nine months ended September 30, 2025, respectively. Excise tax was $0.3 million and $0.9 million for the three and nine months ended September 30, 2024, respectively. As of September 30, 2025 and December 31, 2024, we accrued a net federal excise tax expense of $0.6 million and $1.1 million, respectively.

Current wording

Excise tax was $0.1 million and $0.1 million for the three months ended March 31, 2026 and March 31, 2025, respectively. As of March 31, 2026 and December 31, 2025, we accrued a net federal excise tax expense of $0.9 million and $0.8 million, respectively.

Previous wording

The following table shows the breakdown of net realized gains and losses on investments for the three and nine months ended September 30, 2025 and 2024:

Current wording

The following table shows the breakdown of net realized gains and losses on investments for the three months ended March 31, 2026 and 2025:

Previous wording

The following table shows the breakdown in the changes in unrealized appreciation and depreciation of investments for the three and nine months ended September 30, 2025 and 2024:

Current wording

The following table shows the breakdown in the changes in unrealized appreciation and depreciation of investments for the three months ended March 31, 2026 and 2025:

Previous wording

As a business development company, we distribute substantially all of our net income to our stockholders. We generate cash primarily from offerings of securities, borrowings under the Credit Facility and WHF CLO, and cash flows from operations, including interest earned from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less. We expect to fund a portion of our investments through future borrowings. In the future, we may obtain borrowings under other credit facilities and from issuances of senior securities to the extent permitted by the 1940 Act. We may also borrow funds to the extent we determine that additional capital would allow us to take advantage of additional investment opportunities, if the market for debt financing presents attractively priced debt financing opportunities or if our board of directors determines that leveraging our portfolio would be in our best interest and the best interests of our stockholders.

Current wording

As a business development company, we distribute substantially all of our net income to our stockholders. We generate cash primarily from offerings of securities, borrowings under the Credit Facility (as defined in Note 6 to the Accompanying Financial Statements) and WHF CLO (as defined in Note 2 to the accompanying financial statements), and cash flows from operations, including interest earned from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less. We expect to fund a portion of our investments through future borrowings. In the future, we may obtain borrowings under other credit facilities and from issuances of senior securities to the extent permitted by the 1940 Act. We may also borrow funds to the extent we determine that additional capital would allow us to take advantage of additional investment opportunities, if the market for debt financing presents attractively priced debt financing opportunities or if our board of directors determines that leveraging our portfolio would be in our best interest and the best interests of our stockholders.

Previous wording

Our board of directors may decide to issue common stock, such as through at-the-market offerings, direct placements or otherwise, to finance our operations rather than issuing debt or other senior securities. Any decision to sell shares below the then-current net asset value per share of our common stock is subject to stockholder approval and a determination by our board of directors that such issuance and sale is in our and our stockholders’ best interests. Any sale or other issuance of shares of our common stock at a price below net asset value per share results in immediate dilution to our stockholders’ interests in our common stock and a reduction in our net asset value per share. If we were to

Current wording

Our board of directors may decide to issue common stock, such as through at-the-market offerings, direct placements or otherwise, to finance our operations rather than issuing debt or other senior securities. Any decision to sell shares below the then-current net asset value per share of our common stock is subject to stockholder approval and a determination by our board of directors that such issuance and sale is in our and our stockholders’ best interests. Any sale or other issuance of shares of our common stock at a price below net asset value per share results in immediate dilution to our stockholders’ interests in our common stock and a reduction in our net asset value per share. If we were to issue additional shares of our common stock during the next 12 months, we do not intend to issue shares below the then-current net asset value per share.

Previous wording

Restricted cash and cash equivalents and restricted foreign currency include amounts that are collected and held by the custodians or trutees who have been appointed as custodian of the assets securing certain of the Company’s financing transactions including the Credit Facility and the 2025 CLO Securitization. Restricted cash and cash equivalents and restricted foreign currency are held by the trustee for the payment of interest expense and principal on the outstanding borrowings or reinvestment into new assets. Restricted amounts that represent interest or fee income are transferred to unrestricted cash accounts by the trustees generally once a quarter after the payment of operating expenses and other amounts due under the respective credit, indenture or other governing agreements for the Company’s financing transactions as more fully discussed below, pertaining to the Credit Facility and the 2025 CLO Securitization*.*

Current wording

Restricted cash and cash equivalents and restricted foreign currency include amounts that are collected and held by the custodians or trustees who have been appointed as custodian of the assets securing certain of the Company’s financing transactions including the Credit Facility and the 2025 CLO Securitization (as defined in Note 6 to the accompanying financial statements). Restricted cash and cash equivalents and restricted foreign currency are held by the trustee for the payment of interest expense and principal on the outstanding borrowings or reinvestment into new assets. Restricted amounts that represent interest or fee income are transferred to unrestricted cash accounts by the trustees generally once a quarter after the payment of operating expenses and other amounts due under the respective credit, indenture or other governing agreements for the Company’s financing transactions as more fully discussed below, pertaining to the Credit Facility and the 2025 CLO Securitization*.*

Previous wording

We may become a party to financial instruments with off-balance sheet risk in the normal course of our business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve elements of liquidity and credit risk in excess of the amount recognized on the consolidated statements of assets and liabilities. As of September 30, 2025 and December 31, 2024, we had commitments to fund approximately $30.3 million and $26.4 million, respectively, of revolving lines of credit or delayed draw facilities to our portfolio companies. We reasonably believe that we have sufficient assets to adequately cover and allow us to satisfy our outstanding unfunded commitments.

Current wording

We may become a party to financial instruments with off-balance sheet risk in the normal course of our business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve elements of liquidity and credit risk in excess of the amount recognized on the consolidated statements of assets and liabilities. As of March 31, 2026 and December 31, 2025, we had commitments to fund approximately $39.0 million and $41.0 million, respectively, of revolving lines of credit or delayed draw facilities to our portfolio companies. We reasonably believe that we have sufficient assets to adequately cover and allow us to satisfy our outstanding unfunded commitments.

Previous wording

Our operating activities provided cash and cash equivalents of $76.3 million during the nine months ended September 30, 2025, primarily from realizations and repayments on our investments, partially offset from acquisition of investments and cash used from the net change in working capital. Our financing activities used cash and cash equivalents of $58.2 million during the nine months ended September 30, 2025, primarily due to payment of distributions to stockholders and repayment of net borrowings on the Credit Facility, the 5.375% 2025 Notes, offset with the issuance of the 2025 CLO Notes.

Current wording

Our operating activities provided cash and cash equivalents of $28.2 million during the three months ended March 31, 2026, primarily from realizations and repayments on our investments, partially offset from acquisition of investments and cash used from the net change in working capital. Our financing activities used cash and cash equivalents of $8.6 million during the three months ended March 31, 2026, primarily due to payment of distributions to stockholders andpurchases of common stock.

Previous wording

Our operating activities provided cash and cash equivalents of $57.7 million during the nine months ended September 30, 2024, primarily from the net proceeds received from realizations and repayments on our investments, partially offset by acquisition of investments and cash used from the net change in working capital. Our financing activities used cash and cash equivalents of $61.5 million during the nine months ended September 30, 2024, primarily for repayments on the Credit Facility and the payment of distributions to stockholders.

Current wording

Our operating activities used cash and cash equivalents of $7.0 million during the three months ended March 31, 2025, primarily from acquisition of investments and cash used from the net change in working capital the net proceeds, partially offset from realizations and repayments on our investments. Our financing activities used cash and cash equivalents of $1.2 million during the three months ended March 31, 2025, primarily due to payment of distributions to stockholders, offset with net fundings on the Credit Facility.

Previous wording

As of December 31, 2024, we had cash and cash equivalent resources of $27.8 million, including $15.4 million of restricted cash. As of December 31, 2024, we had approximately $173.5 million undrawn and available to be drawn under the Credit Facility based on the collateral and portfolio quality requirements stipulated in the related credit agreement.

Current wording

As of March 31, 2026, we had cash and cash equivalent resources of $49.4 million, including $37.6 million of restricted cash. As of March 31, 2026, we had approximately $50.0 million undrawn under the Credit Facility based on the collateral and portfolio quality requirements stipulated in the related credit agreement. As of March 31, 2026, due to borrowing base limitations, approximately $45.7 million was available to be drawn under the Credit Facility based on these requirements.

Previous wording

As of September 30, 2025, we had cash and cash equivalent resources of $45.9 million, including $36.4 million of restricted cash. As of September 30, 2025, we had approximately $100.0 million undrawn and available to be drawn under the Credit Facility based on the collateral and portfolio quality requirements stipulated in the related credit agreement. As of September 30, 2025, due to borrowing base limitations, approximately $23.4 million was available to be drawn under the Credit Facility based on these requirements.

Current wording

As of December 31, 2025, we had cash and cash equivalent resources of $29.7 million, including $22.7 million of restricted cash. As of December 31, 2025, we had approximately $100.0 million undrawn and available to be drawn under the Credit Facility based on the collateral and portfolio quality requirements stipulated in the related credit agreement. As of December 31, 2025 due to borrowing base limitations, approximately $43.8 million was available to be drawn under the Credit Facility based on these requirements.

Previous wording

In January 2019, we and STRS Ohio formed a joint venture, STRS JV, that invests primarily in senior secured loans, including first lien and second lien facilities, to performing lower middle market companies across a broad range of industries that typically carry a floating interest index rate based on SOFR, or an equivalent index rate and have a term of three to six years. STRS JV invests in portfolio companies in the same industries in which we may directly invest. STRS JV was formed as a Delaware LLC and is not consolidated by either us or STRS Ohio for financial reporting purposes. On July 19, 2019, STRS JV formally launched operations. As of September 30, 2025, STRS JV had total assets of $364.3 million. As of December 31, 2024, STRS JV had total assets of $309.1 million.

Current wording

In January 2019, we and STRS Ohio formed a joint venture, STRS JV, that invests primarily in senior secured loans, including first lien and second lien facilities, to performing lower middle market companies across a broad range of industries that typically carry a floating interest index rate based on SOFR, or an equivalent index rate and have a term of three to six years. STRS JV invests in portfolio companies in the same industries in which we may directly invest. STRS JV was formed as a Delaware LLC and is not consolidated by either us or STRS Ohio for financial reporting purposes. On July 19, 2019, STRS JV formally launched operations. As of March 31, 2026, STRS JV had total assets of $337.2 million. As of December 31, 2025, STRS JV had total assets of $335.9 million.

Previous wording

We provide capital to STRS JV in the form of LLC equity interests and subordinated notes. In February 2023, we increased our capital commitment to the STRS JV in the amount of an additional $15.0 million, bringing our total capital commitment to the STRS JV to $115.0 million, comprised of $92.0 million of subordinated notes and $23.0 million of

Current wording

We provide capital to STRS JV in the form of LLC equity interests and subordinated notes. In February 2023, we increased our capital commitment to the STRS JV in the amount of an additional $15.0 million, bringing our total capital commitment to the STRS JV to $115.0 million, comprised of $92.0 million of subordinated notes and $23.0 million of LLC equity interests. We previously increased our capital commitment in February 2022 to the STRS JV in the amount of an additional $25.0 million, bringing our then total capital commitment to the STRS JV to $100.0 million, comprised of $80.0 million of subordinated notes and $20.0 million of LLC equity interests.

Previous wording

STRS JV is managed by a four-person board of managers, two of whom are selected by us and two of whom are selected by STRS Ohio. All material decisions with respect to STRS JV, including those involving its investment portfolio, require unanimous approval of a quorum of the board of managers. Quorum is defined as (i) the presence of two members of the board of managers; provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of managers; provided that the individual that was elected, designated or appointed by the member with only one individual present is entitled to cast two votes on each matter; or (iii) the presence of four members of the board of managers; provided that two individuals are present that were elected, designated or appointed by each member.

Current wording

portfolio, require unanimous approval of a quorum of the board of managers. Quorum is defined as (i) the presence of two members of the board of managers; provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of managers; provided that the individual that was elected, designated or appointed by the member with only one individual present is entitled to cast two votes on each matter; or (iii) the presence of four members of the board of managers; provided that two individuals are present that were elected, designated or appointed by each member.

Previous wording

The following table shows the portfolio composition by industry grouping at fair value:

Current wording

The following table shows the portfolio composition of STRS JV by industry grouping at fair value:

Previous wording

See Note 4 to our consolidated financial statements for further discussion on STRS JV’s portfolio and selected balance sheet information as of September 30, 2025 and December 31, 2024 and selected statement of operations information for the three and nine months ended September 30, 2025 and 2024.

Current wording

See Note 4 to our consolidated financial statements for further discussion on STRS JV’s portfolio and selected balance sheet information as of March 31, 2026 and December 31, 2025 and selected statement of operations information for the three months ended March 31, 2026 and 2025.

Previous wording

On November 10, 2025, our board of directors authorized a stock repurchase program for the purpose of repurchasing up to an aggregate of $15.0 million of its common stock on the open market or in privately negotiated purchases at prices below our then-current net asset value per share in accordance with the guidelines specified in Rule 10b-18 under the Securities Exchange Act of 1934 (the "Repurchase Program"). The timing, manner, price and amount of any share repurchases will be determined by us, in its sole discretion, based upon an evaluation of economic and market conditions, stock price, applicable legal and regulatory requirements and other factors. The Repurchase Program does not require us to repurchase any specific number of shares of common stock or any shares of common stock at all and there can be no assurance that any shares of common stock will be repurchased under the Repurchase Program. The timing and amount of any common stock repurchased depend on the terms and conditions of the Repurchase Program, the market price of the common stock and trading volumes. The Repurchase Program may be suspended, extended, modified or discontinued at any time. Repurchases are subject to SEC regulations as well as certain price, market volume and timing constraints.

Current wording

In October 2025, our board of directors authorized a stock repurchase program for the purpose of repurchasing up to an aggregate of $15.0 million of its common stock on the open market or in privately negotiated purchases at prices below our then-current net asset value per share, in each case in accordance with Rule 10b-18 under the Securities Exchange Act of 1934 (the "Repurchase Program"). On February 26, 2026, our board of directors approved a $7.5 million increase in the authorized amount available for repurchases under the Repurchase Program up to $22.5 million. The timing, manner, price and amount of any share repurchases will be determined by us, in our sole discretion, based upon an evaluation of economic and market conditions, stock price, applicable legal and regulatory requirements and other factors. The Repurchase Program does not require us to repurchase any specific number of shares of common stock or any shares of common stock at all and there can be no assurance that any shares of common stock will be repurchased under the Repurchase Program. The timing and amount of any common stock repurchased depend on the terms and

Previous wording

On December 23, 2015, our wholly owned subsidiary WhiteHorse Credit I, LLC, or WhiteHorse Credit, entered into the Credit Facility.

Current wording

Our wholly owned subsidiary WhiteHorse Credit I, LLC, or WhiteHorse Credit initially, entered into the Credit Facility on December 23, 2015. As of March 31, 2026 and December 31, 2025, the Credit Facility had a maximum borrowing capacity of $50.0 million and $100.0 million, respectively. The reinvestment period for the Credit Facility expires on January 17, 2028 and the maturity date for the Credit Facility is January 17, 2030.

Previous wording

As of September 30, 2025, the Credit Facility provided for borrowings in an aggregate principal amount up to $100.0 million. As of September 30, 2025, the required minimum outstanding borrowings under the Credit Facility were $25.0 million.

Current wording

As of March 31, 2026, the Credit Facility provided for borrowings in an aggregate principal amount up to $50.0 million. As of March 31, 2026, the required minimum outstanding borrowings under the Credit Facility were $25.0 million.

Previous wording

Advances under the Credit Facility are based on SOFR for USD denominated borrowings plus an annual spread of 2.25%. The Credit Facility bears interest at EurIBOR for EUR denominated borrowings, CORRA for CAD denominated borrowings and SONIA for GBP denominated borrowings, plus a spread of 2.25% on outstanding borrowings. Interest is payable quarterly in arrears. WhiteHorse Credit is required to pay a non-usage fee which accrues at 0.55% per annum on the average daily unused amount of the financing commitments, to the extent the aggregate principal amount available under the Credit Facility has not been borrowed. WhiteHorse Credit is required to pay a minimum outstanding borrowing fee which accrues at 2.25% per annum on the average daily outstanding principal borrowing amounts below the minimum funding amount. WhiteHorse Credit paid an upfront fee and incurred certain other customary costs and expenses in connection with obtaining the Credit Facility. Any amounts borrowed under the Credit Facility will mature, and all accrued and unpaid interest thereunder are due and payable, on January 17, 2030.

Current wording

Advances under the Credit Facility are based on SOFR for USD denominated borrowings, EurIBOR for EUR denominated borrowings, CORRA for CAD denominated borrowings and SONIA for GBP denominated borrowings, plus a spread of 2.25% on outstanding borrowings. Interest is payable quarterly in arrears. WhiteHorse Credit is required to pay a non-usage fee which accrues at 0.55% per annum on the average daily unused amount of the financing commitments, to the extent the aggregate principal amount available under the Credit Facility has not been borrowed. WhiteHorse Credit is required to pay a minimum outstanding borrowing fee which accrues at 2.25% per annum on the average daily outstanding principal borrowing amounts below the minimum funding amount. WhiteHorse Credit paid an upfront fee and incurred certain other customary costs and expenses in connection with obtaining the Credit Facility. Any amounts borrowed under the Credit Facility will mature, and all accrued and unpaid interest thereunder are due and payable, on January 17, 2030.

Previous wording

Prior to the Credit Facility amendment on January 17, 2025, advances under the Credit Facility were based on SOFR for USD denominated borrowings plus an annual spread of 2.50%. The Credit Facility bore interest at EurIBOR for EUR denominated borrowings, CORRA for CAD denominated borrowings and SONIA for GBP denominated borrowings, plus a spread of 2.35% on outstanding borrowings. Interest is payable quarterly in arrears. WhiteHorse Credit was required to pay a non-usage fee which accrues at 0.75% per annum on the average daily unused amount of the financing commitments, to the extent the aggregate principal amount available under the Credit Facility has not been borrowed. WhiteHorse Credit paid an upfront fee and incurred certain other customary costs and expenses in connection with obtaining the Credit Facility.

Current wording

borrowings, plus a spread of 2.35% on outstanding borrowings. Interest is payable quarterly in arrears. WhiteHorse Credit was required to pay a non-usage fee which accrues at 0.75% per annum on the average daily unused amount of the financing commitments, to the extent the aggregate principal amount available under the Credit Facility has not been borrowed. WhiteHorse Credit paid an upfront fee and incurred certain other customary costs and expenses in connection with obtaining the Credit Facility.

Previous wording

also includes customary events of default for credit facilities of this nature, including breaches of representations, warranties or covenants by WhiteHorse Finance or WhiteHorse Credit, the occurrence of a change in control, or failure to maintain certain required ratios.

Current wording

The Credit Facility and the related documents require WhiteHorse Finance and WhiteHorse Credit to agree to make certain customary representations and to comply with customary affirmative and negative covenants. The Credit Facility also includes customary events of default for credit facilities of this nature, including breaches of representations, warranties or covenants by WhiteHorse Finance or WhiteHorse Credit, the occurrence of a change in control, or failure to maintain certain required ratios.