WhiteHorse Finance, Inc.
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 9, 2026
WHF$8.10-3.5%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001104659-26-093465
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001104659-26-124203
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 168 previous paragraphs and 168 current paragraphs.
109 unchanged; 51 reworded; 3 added; 1 removed; 7 previous and 5 current paragraphs rearranged.
Tables are not compared: 66 previous and 66 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
respectively. 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.
Current report
General and administrative expenses increased by approximately $0.6 million and $0.7 million for the three and nine months ended September 30, 2026 from the three and nine months ended September 30, 2025. The increases were primarily attributable to approximately $0.4 million of non-recurring expense, which included $0.3 million of offering costs related to its prior shelf registration statement on Form N-2, consisting of the write-off of previously deferred offering costs and offering costs incurred during the period. Non-recurring expenses also included approximately $0.1 million of prepaid expenses associated with the ATM Program that were recognized as an expense after the Company determined it was unlikely to issue shares under the program. The increase was also attributed to $0.1 million of higher board fees and costs incurred by the previously disclosed special committee.
Current report
The following table shows the portfolio composition by industry grouping at fair value:
Removed paragraphs (1)
Previous report
For the period July 1, 2026 through August 10, 2026, we contributed five additional assets to the STRS JV, which included 4 issuers of senior secured debt facilities held as of June 30, 2026.
Reworded paragraphs (51)
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,
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.
Previous wording
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
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.
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 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"), we have agreed to reimburse WhiteHorse Administration for our allocable portion (subject to the review and approval of
Current wording
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, LLC ("WhiteHorse Administration"), 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
Comparison of the Three and Six Months Ended June 30, 2026 and June 30, 2025
Current wording
Comparison of the Three and Nine Months Ended September 30, 2026 and September 30, 2025
Previous wording
Set forth below are the consolidated results of operations for the three and six months ended June 30, 2026 and 2025:
Current wording
Set forth below are the consolidated results of operations for the three and nine months ended September 30, 2026 and 2025:
Previous wording
Consolidated operating results for the three and six months ended June 30, 2026 and 2025 are as follows:
Current wording
Consolidated operating results for the three and nine months ended September 30, 2026 and 2025 are as follows:
Previous wording
Net investment income for the three and six months ended June 30, 2026 totaled $4.7 million and $10.3 million, respectively. Net investment income for the three and six months ended June 30, 2025 totaled $6.6 million and $13.4 million, respectively. Net investment income decreased by $1.9 million and $3.1 million for the three and six months ended June 30, 2026 from the three and six months ended June 30, 2025, as described below under “Investment Income” and “Operating Expenses.”
Current wording
Net investment income for the three and nine months ended September 30, 2026 totaled $4.4 million and $14.7 million, respectively. 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 decreased by $1.7 million and $4.8 million for the three and nine months ended September 30, 2026 from the three and nine months ended September 30, 2025, as described below under “Investment Income” and “Operating Expenses.”
Previous wording
The following table summarizes our investment income for the three and six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes our investment income for the three and nine months ended September 30, 2026 and 2025:
Previous wording
average size of the debt portfolio, excluding STRS JV, andthe weighted average cash yield on income producing investments, excluding STRS JV, was $435.6 million and $443.9 million, and 8.6% and 8.8%, respectively. For the three and six months ended June 30, 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 $549.6 million and $553.7 million, and 8.9% and 8.9%, respectively.
Current wording
Interest income other than PIK income, decreased $2.8 million and $9.0 million for the three and nine months ended September 30, 2026 from the three and nine months ended September 30,2025, primarily attributable to lower yields, investments placed on non-accrual status and lower portfolio size. For the three and nine months ended September 30, 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 $436.5 million and $440.1 million, and 9.0% and 8.9%, respectively. For the three and nine months ended September 30, 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 $495.0 million and $531.8 million, and 9.9% and 9.3%, respectively.
Previous wording
PIK income decreased by $0.1 million for the three months ended June 30, 2026 from the three months ended June 30,2025. PIK income earned for the three months ended June 30, 2026 was primarily derived from investments in Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.) of $0.1 million and various investments aggregating $0.4 million. PIK income decreased by $0.2 million for the six months ended June 30, 2026 from the six months ended June 30, 2025. PIK income earned for the six months ended June 30, 2026 was primarily derived from investments in Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.) of $0.2 million, Claridge Products and Equipment, LLCof $0.1 million, Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.) of $0.1 millionand various investments aggregating $0.7 million.
Current wording
PIK income decreased by less than $0.1 million for the three months ended September 30, 2026 from the three months ended September 30,2025. PIK income earned for the three months ended September 30, 2026 was primarily derived from various investments aggregating $0.4 million. PIK income decreased by $0.2 million for the nine months ended September 30, 2026 from the nine months ended September 30, 2025. PIK income earned for the nine months ended September 30, 2026 was primarily derived from investments in Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.) of $0.2 million, Claridge Products and Equipment, LLCof $0.2 million, Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.) of $0.2 millionand various investments aggregating $0.9 million.
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 six months ended June 30,2026, PIK income as a percentage of total investment income was 3.7% and 3.8%, respectively. For the three and six months ended June 30, 2025, PIK income as a percentage of total investment income was 3.5% and 3.6%, 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 and nine months ended September 30,2026, PIK income as a percentage of total investment income was 2.7% and 3.4%, respectively. 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.
Previous wording
Fee and dividend income decreased by $0.6 million and $0.7 million for the three and six months ended June 30, 2026 from the three and six months ended June 30, 2025. We expect to generate some level of non-recurring fee income during most quarters from prepayments, amendments and other sources. For the three and six months ended June 30, 2026, we earned non-recurring fee income of $0.1 million and $0.4 million. For the three and six months ended June 30, 2025, we earned non-recurring fee income of $0.7 million and $1.1 million.
Current wording
Fee and dividend income increased by $0.1 million for the three months ended September 30, 2026 from the three months ended September 30, 2025, and decreased by $0.7 million for the nine months ended September 30, 2026 from the nine months ended September 30, 2025. 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, 2026, we earned non-recurring fee income of $0.2 million and $0.6 million. For the three and nine months ended September 30, 2025, we earned non-recurring fee income of $0.1 million and $1.1 million.
Previous wording
Interest and dividend income from STRS JV decreased by $0.2 million and $0.3 million for the three and six months ended June 30, 2026 from the three months ended June 30, 2025, primarily attributable toa decreasein base rates and portfolio yields, partially offset by a larger investment portfolio.
Current wording
Interest and dividend income from STRS JV decreased by $0.1 million and $0.4 million for the three and nine months ended September 30, 2026 from the three and nine months ended September 30, 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 six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes our expenses for the three and nine months ended September 30, 2026 and 2025:
Previous wording
Interest expense decreased by $1.3 million and $2.5 million for the three and six months ended June 30, 2026 from the three and six months ended June 30, 2025, primarily due to lower weighted average borrowing base and weighted average interest rate. For the three and six months ended June 30, 2026, the weighted average outstanding borrowings were $328.5 million and $328.5 million at a weighted average interest rate of 5.24% and 5.27%, respectively. For the three and six months ended June 30, 2025, the weighted average outstanding borrowings were $371.3 million and $370.6 million at a weighted average interest rate of 5.72% and 5.79%, respectively.
Current wording
Interest expense decreased by $0.9 million and $3.5 million for the three and nine months ended September 30, 2026 from the three and nine months ended September 30, 2025, primarily due to lower weighted average borrowing base and weighted average interest rate. For the three and nine months ended September 30, 2026, the weighted average outstanding borrowings were $328.5 million and $328.5 million at a weighted average interest rate of 5.25% and 5.26%,
Previous wording
Base management fees decreased by $0.3 million and $0.6 million for the three and six months ended June 30, 2026 from the three months ended June 30, 2025, primarily due to lower gross assets.
Current wording
Base management fees decreased by $0.2 million and $0.8 million for the three and nine months ended September 30, 2026 from the three months ended September 30, 2025, primarily due to lower gross assets.
Previous wording
Performance-based incentive fees decreased by $0.6 million and $1.2 million for the three and six months ended June 30, 2026 from the three and six months ended June 30, 2025, primarily due to lower pre-incentive fee net investment income. For the three and six months ended June 30, 2026, the Company recognized an irrevocable fee waiver of $0.1 million and $0.3 million, respectively. For the three and six months ended June 30, 2026 and 2025, there were no capital gains incentive fee expenses incurred.
Current wording
Performance-based incentive fees decreased by $0.6 million and $1.8 million for the three and nine months ended September 30, 2026 from the three and nine months ended September 30, 2025, primarily due to lower pre-incentive fee net investment income. For the three and nine months ended September 30, 2026, the Company recognized an irrevocable fee waiver of less than $0.1 million and $0.3 million, respectively. For the three and nine months ended September 30, 2026 and 2025, there were no capital gains incentive fee expenses incurred.
Previous wording
Excise tax was $0.1 million and $0.2 million for the three and six months ended June 30, 2026, respectively. Excise tax was $0.2 million and $0.3 million for the three and six months ended June 30, 2025, respectively. As of June 30, 2026 and December 31, 2025, we accrued a net federal excise tax expense of $0.3 million and $0.8 million, respectively.
Current wording
Excise tax was $0.1 million and $0.3 million for the three and nine months ended September 30, 2026, respectively. Excise tax was $0.2 million and $0.5 million for the three and nine months ended September 30, 2025, respectively. As of September 30, 2026 and December 31, 2025, we accrued a net federal excise tax expense of $0.4 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 six months ended June 30, 2026 and 2025:
Current wording
The following table shows the breakdown of net realized gains and losses on investments for the three and nine months ended September 30, 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 six months ended June 30, 2026 and 2025:
Current 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, 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 (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.
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 borrowings. In the future, we may secure borrowing capacity under other credit facilities and through 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
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 June 30, 2026 and December 31, 2025, we had commitments to fund approximately $35.8 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.
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 September 30, 2026 and December 31, 2025, we had commitments to fund approximately $28.3 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 $15.3 million during the six months ended June 30, 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 $16.9 million during the six months ended June 30, 2026, primarily due to payment of distributions to stockholders andpurchases of common stock.
Current wording
Our operating activities provided cash and cash equivalents of $15.7 million during the nine months ended September 30, 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 $22.3 million during the nine months ended September 30, 2026, primarily due to payment of distributions to stockholders andpurchases of common stock.
Previous wording
Our operating activities provided cash and cash equivalents of $14.7 million during the six months ended June 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 $9.3 million during the six months ended June 30, 2025, primarily due to payment of distributions to stockholders and repayment of net borrowings on the Credit Facility, offset with the issuance of the 2025 CLO Notes.
Current 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, offset with the issuance of the 2025 CLO Notes.
Previous wording
As of June 30, 2026, we had cash and cash equivalent resources of $28.1 million, including $19.6 million of restricted cash. As of June 30, 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 June 30, 2026, due to
Current wording
As of September 30, 2026, we had cash and cash equivalent resources of $23.1 million, including $16.0 million of restricted cash. As of September 30, 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 September 30, 2026, due to borrowing base limitations, approximately $30.1 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 June 30, 2026, STRS JV had total assets of $350.3 million. As of December 31, 2025, STRS JV had total assets of $335.9 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 September 30, 2026 and December 31, 2025, STRS JV had total assets of $344.1 million and $335.9 million, respectively.
Previous wording
As of both June 30, 2026 and December 31, 2025, we and STRS Ohio owned approximately 65.71% and 34.29%, respectively, of the LLC equity interests of STRS JV. As of June 30, 2026, our investment in STRS JV consisted of equity contributions and subordinated note advance commitments of $23.0 million and $92.0 million, respectively, of which $1.4 million and $5.7 million were unfunded, respectively. As of December 31, 2025, our investment in STRS JV consisted of equity contributions and subordinated note advance commitments of $23.0 million and $92.0 million, respectively, of which $1.9 million and $7.6 million were unfunded, respectively.
Current wording
As of both September 30, 2026 and December 31, 2025, we and STRS Ohio owned approximately 65.71% and 34.29%, respectively, of the LLC equity interests of STRS JV. As of September 30, 2026, our investment in STRS JV consisted of equity contributions and subordinated note advance commitments of $23.0 million and $92.0 million, respectively, all of which were fully funded. As of December 31, 2025, our investment in STRS JV consisted of equity contributions and subordinated note advance commitments of $23.0 million and $92.0 million, respectively, of which $1.9 million and $7.6 million were unfunded, respectively.
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 June 30, 2026 and December 31, 2025 and selected statement of operations information for the three and six months ended June 30, 2026 and 2025.
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 September 30, 2026 and December 31, 2025 and selected statement of operations information for the three and nine months ended September 30, 2026 and 2025.
Previous wording
On March 31, 2023, we entered into an equity distribution agreement (the “Equity Distribution Agreement”), with WhiteHorse Advisers, WhiteHorse Administration and B. Riley Securities, Inc., as the sales agent, or the Sales Agent, in connection with the sale of shares of our common stock, with an aggregate offering price of up to $35.0 million. The Equity Distribution Agreement provides that we may offer and sell shares of our common stock from time to time through the Sales Agent in amounts and at times to be determined by us. Actual sales will depend on a variety of factors to be determined by us from time to time, including market conditions and the trading price of our common stock. We expect to use all or substantially all of the net proceeds from the ATM Program to invest in portfolio companies in accordance with our investment objective and strategies and for general corporate purposes.
Current wording
On March 31, 2023, we entered into an equity distribution agreement (the “Equity Distribution Agreement”), with WhiteHorse Advisers, WhiteHorse Administration and B. Riley Securities, Inc., as the sales agent, or the Sales Agent, in connection with the sale of shares of our common stock, with an aggregate offering price of up to $35.0 million. The Equity Distribution Agreement provides that we may offer and sell shares of our common stock from time to time through the Sales Agent in amounts and at times to be determined by us. Actual sales will depend on a variety of factors to be determined by us from time to time, including market conditions and the trading price of our common stock. We expect to use net proceeds from the ATM Program primarily to invest in portfolio companies in accordance with our investment objective and strategies and for general corporate purposes.
Previous 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 conditions of the Repurchase Program, the market price of the common stock and trading volumes. The Repurchase
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
Previous wording
During the three and six months ended June 30, 2026, we repurchased additional common stock after deducting commissions, in the aggregate of $2.6 million and $5.6 million, respectively. As of June 30, 2026, $9.5 million remained available under the Repurchase Program.
Current wording
During the nine months ended September 30, 2026, we repurchased additional common stock, after deducting commissions, in the aggregate of $5.6 million. No shares of common stock were repurchased during the three months ended September 30, 2026. As of September 30, 2026, $9.5 million remained available under the Repurchase Program.
Previous 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.
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.
Previous 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.
Current 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.
Previous wording
As of June 30, 2026, there were no outstanding borrowings under the Credit Facility and, based on collateral and portfolio requirements stipulated in the Credit Facility agreement, approximately $50.0 million was undrawn in credit facility on such date. The Credit Facility is secured by all of the assets of WhiteHorse Credit, which included loans with a fair value of $118.1 million as of June 30, 2026.
Current wording
As of September 30, 2026, there were no outstanding borrowings under the Credit Facility and, based on collateral and portfolio requirements stipulated in the Credit Facility agreement, approximately $50.0 million was undrawn in credit facility on such date. The Credit Facility is secured by all of the assets of WhiteHorse Credit, which included loans with a fair value of $114.4 million as of September 30, 2026.
Previous wording
As part of the 2025 CLO Securitization, the Company entered into master loan sale agreements that provide for the sale of assets on the 2025 CLO Securitization closing date as well as for future sales from the Company to WHF CLO. The 2025 CLO Securitization is collateralized and secured by a diversified portfolio of senior secured loans or participation interests therein with the potential for reinvestment in (i) first and second lien loans or participation interests therein, (ii) corporate bonds or (iii) loans made to a debtor-in-possession pursuant to Section 364 of the Bankruptcy Code (“DIP loans”). Through May 25, 2029, all principal collections received on the underlying collateral may be used by WHF CLO to purchase new collateral (allowing the Company to maintain the initial leverage obtained in the 2025 CLO Securitization) under the direction of H.I.G. Capital, L.L.C., an affiliate of the Investment Adviser, in its capacity as the collateral manager to WHF CLO (the “CLO Investment Manager”), and in accordance with the Company’s investment strategy and subject to customary conditions set forth in the documents governing the 2025 CLO Securitization; any fees that the CLO Investment Manager would otherwise be entitled to for providing such services has been waived. The 2025 CLO Notes are scheduled to mature on May 5, 2037; however, they may be redeemed by the Company, at the written direction of (i) a majority of the Subordinated Notes (with the consent of the CLO Investment Manager) or (ii) the CLO Investment Manager (with the consent of a majority of the 2025 Subordinated CLO Notes), in each case, on any business day on or after June 10, 2027.
Current wording
As part of the 2025 CLO Securitization, the Company entered into master loan sale agreements that provide for the sale of assets on the 2025 CLO Securitization closing date as well as for future sales from the Company to WHF CLO. The 2025 CLO Securitization is collateralized and secured by a diversified portfolio of senior secured loans or participation interests therein with the potential for reinvestment in (i) first and second lien loans or participation interests therein, (ii) corporate bonds or (iii) loans made to a debtor-in-possession pursuant to Section 364 of the Bankruptcy Code (“DIP loans”). Through May 25, 2029, all principal collections received on the underlying collateral may be used by WHF CLO to purchase new collateral (allowing the Company to maintain the initial leverage obtained in the 2025 CLO Securitization) under the direction of H.I.G. Capital, L.L.C., an affiliate of the Investment Adviser, in its capacity as the collateral manager to WHF CLO (the “CLO Investment Manager”), and in accordance with the Company’s investment strategy and subject to customary conditions set forth in the documents governing the 2025 CLO Securitization; any fees that the CLO Investment Manager would otherwise be entitled to for providing such services have been waived. The 2025 CLO Notes are scheduled to mature on May 25, 2037; however, they may be redeemed by the Company, at the written direction of (i) a majority of the Subordinated Notes (with the consent of the CLO Investment Manager) or (ii) the CLO Investment Manager (with the consent of a majority of the 2025 Subordinated CLO Notes), in each case, on any business day on or after June 10, 2027.
Previous wording
As of June 30, 2026, there were 36 portfolio companies with a total fair value of approximately $296.0 million** securing the 2025 CLO Securitization. As of December 31, 2025, there were 35 portfolio companies with a total fair value of approximately $294.6 million **securing the 2025 CLO Securitization. The pool of loans in the 2025 CLO Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.
Current wording
As of September 30, 2026, there were 35 portfolio companies with a total fair value of approximately $288.8 million** securing the 2025 CLO Securitization. As of December 31, 2025, there were 35 portfolio companies with a total fair value of approximately $294.6 million **securing the 2025 CLO Securitization. The pool of loans in the 2025 CLO Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.
Previous wording
On November 24, 2021, we completed a public offering of $75 million of aggregate principal amount of unsecured notes. Interest on the 4.000% 2026 Notes is paid semiannually on June 15, and December 15, at a fixed, annual rate of 4.00%. The 4.000% 2026 Notes will mature on December 15, 2026 and may be redeemed in whole or in part at any time prior to September 15, 2026, at par plus a “make-whole” premium, and thereafter at par. The 4.000% 2026 Notes are direct unsecured obligations and are structurally subordinate to borrowings under the Credit Facility and 2025 CLO Securitization and will rank pari passu with all outstanding and future unsecured unsubordinated indebtedness.
Current wording
On November 24, 2021, we completed a public offering of $75 million of aggregate principal amount of unsecured notes. Interest on the 4.000% 2026 Notes is paid semiannually on June 15, and December 15, at a fixed, annual rate of 4.00%. The 4.000% 2026 Notes will mature on December 15, 2026. The 4.000% 2026 Notes are direct unsecured obligations and are structurally subordinate to borrowings under the Credit Facility and 2025 CLO Securitization and will rank pari passu with all outstanding and future unsecured unsubordinated indebtedness.
Previous wording
As of June 30, 2026, our investment portfolio consisted primarily of senior secured loans across 131 positions in 67 companies with an aggregate fair value of $569.2 million. As of June 30, 2026, the majority of our portfolio was comprised of senior secured loans to lower middle market borrowers and nearly all of those loans were variable-rate investments (primarily indexed to SOFR) with five fixed-rate loan investments representing 1.4% based on fair value. As of June 30, 2026, our portfolio had an average investment size of $3.6 million based on fair value and average debt investment size of $4.9 million, with investment sizes ranging from zero to $20.4 million and a weighted average effective yield of 8.8% (and a weighted average effective yield on income-producing debt investments of 10.8%).
Current wording
As of September 30, 2026, our investment portfolio consisted primarily of senior secured loans across 125 positions in 64 companies with an aggregate fair value of $569.1 million. As of September 30, 2026, the majority of our portfolio was comprised of senior secured loans to lower middle market borrowers and nearly all of those loans were variable-rate investments (primarily indexed to SOFR) with five fixed-rate loan investments representing 1.4% based on fair value. As of September 30, 2026, our portfolio had an average investment size of $3.7 million based on fair value and average debt investment size of $5.2 million, with investment sizes ranging from zero to $20.4 million and a weighted average effective yield of 8.7% (and a weighted average effective yield on income-producing debt investments of 11.0%).
Previous wording
For the six months ended June 30, 2026, we invested $58.6 million in new and existing portfolio companies, offset by repayments and sales of $69.9 million. Proceeds from sales totaled $35.5 million while repayments included $3.8 million of scheduled repayments and $30.6 million of unscheduled repayments.
Current wording
For the nine months ended September 30, 2026, we invested $82.5 million in new and existing portfolio companies, offset by repayments and sales of $96.9 million. Proceeds from sales totaled $50.0 million while repayments included $5.1 million of scheduled repayments and $41.8 million of unscheduled repayments.
Previous wording
For the six months ended June 30, 2025, we invested $90.5 million in new and existing portfolio companies, offset by repayments and sales of $100.5 million. Proceeds from sales totaled $42.5 million while repayments included $3.1 million of scheduled repayments and $54.9 million of unscheduled repayments.
Current wording
For the nine months ended September 30, 2025, we invested $112.4 million in new and existing portfolio companies, offset by repayments and sales of $177.3 million. Proceeds from sales totaled $57.3 million while repayments included $30.3 million of scheduled repayments and $89.7 million of unscheduled repayments.
Showing the first 40 of 51 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
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 report — wording carried from elsewhere
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 report — wording carried from elsewhere
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 report — wording carried from elsewhere
notes in Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC) and common equity of Arcserve Cayman GP LLC (d/b/a Arcserve (USA), LLC) and Arcserve Cayman Topco LP (d/b/a Arcserve (USA), LLC).
Current report — wording carried from elsewhere
However, the Investment Adviser does not intend to have de minimis investments of less than 1.5% of our total assets (up to an aggregate of 10% of our total assets) independently reviewed.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
our independent directors) of overhead and other expenses incurred by WhiteHorse Administration in performing its obligations under the Administration Agreement.
Previous report — wording carried elsewhere
Interest income other than PIK income, decreased $3.5 million and $6.2 million for the three and six months ended June 30, 2026 from the three and six months ended June 30,2025, primarily attributable to lower yields, investments placed on non-accrual status and lower portfolio size. For the three and six months ended June 30, 2026, the weighted
Previous report — wording carried elsewhere
borrowing base limitations, approximately $39.8 million was available to be drawn under the Credit Facility based on these requirements.
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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
Previous report — wording carried elsewhere
used in determining such estimates could cause actual results to differ. We have identified the following as critical accounting policies and estimates.
Previous report — wording carried elsewhere
yield risk. Such factors may be given different weighting depending on our assessment of the underlying investment, and we may analyze apparently comparable investments in different ways.