Key Points
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Income remained below the base distribution: Third-quarter core net investment income was $0.224 per share and GAAP income was $0.207, both below the $0.25 quarterly distribution. WhiteHorse also declared a $0.17 special distribution tied to undistributed 2025 taxable income.
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NAV and credit quality improved: Net asset value rose to $11.82 per share, while non-accrual investments declined to 2% of the debt portfolio’s fair value from 3.6% after a restructuring returned Outward Hound to accrual status.
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Strategic and financing uncertainty remains: WhiteHorse has paused share repurchases during a board review of strategic alternatives and is seeking a solution for $85 million of notes maturing in December. Management is also pursuing potential sales of Chase Products and PlayMonster, though timing and outcomes are uncertain.
WhiteHorse Finance (NASDAQ:WHF) reported a second consecutive quarterly increase in net asset value and improved credit quality for the third quarter of 2026, but its investment income remained below its quarterly distribution.
The business development company also said it has paused share repurchases while an independent board committee reviews strategic alternatives, and is working on a financing solution for $85 million of unsecured notes maturing in December.
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Net asset value rose to $11.82 per share at September 30 from $11.77 at the end of June. Chief Executive Officer Stuart Aronson attributed the increase primarily to unrealized appreciation in investments in Chase Products and PlayMonster.
Investment income and distributions
Third-quarter GAAP net investment income was $4.4 million, or $0.207 per share, down from $4.7 million, or $0.217 per share, in the second quarter. Core net investment income rose to $4.8 million, or $0.224 per share, from $0.217 per share.
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The difference between the third quarter’s GAAP and core figures reflected approximately $450,000 in nonrecurring expenses, including the write-off of deferred offering costs associated with the company’s shelf registration statement and its previously active at-the-market equity offering program. The expenses amounted to $0.017 per share after the related incentive fee, management said.
Both measures fell short of the company’s third-quarter base distribution of $0.25 per share. The board declared a fourth-quarter base distribution at the same rate, payable January 6, 2027, to shareholders of record on December 21, 2026.
