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WhiteHorse Finance, Inc. Reports Fourth Quarter And Fiscal Year 2012 Earnings Results

  WhiteHorse Finance, Inc. Reports Fourth Quarter And Fiscal Year 2012
  Earnings Results

Business Wire

NEW YORK -- March 5, 2013

WhiteHorse Finance, Inc. (“WhiteHorse Finance” or the "Company") (NASDAQ: WHF)
today reported its fourth quarter and year-end financial results for fiscal
year ended December 31, 2012.

Summary Highlights

  *Full year 2012 net investment income of $42.2 million
  *Full year 2012 net increase in net assets of $39.6 million
  *Net asset value (“NAV”) per share was $15.30 as of December 31, 2012
  *Fourth quarter 2012 distribution of $0.108 per share
  *Successful completion of the Company’s initial public offering (“IPO”),
    raising gross proceeds of $100 million

Jay Carvell, WhiteHorse Finance’s Chief Executive Officer commented, “We were
extremely pleased to have raised over $100 million in the Company’s IPO in
December 2012. Our investment objective is to generate attractive
risk-adjusted returns, primarily by originating and investing in loans to
performing small-cap companies across a broad range of industries. Since the
IPO, the Company has been focused on sourcing and evaluating suitable
investment opportunities for the Company from H.I.G. Capital’s extensive deal
sourcing network. We also continue to carefully monitor the performance of the
existing loans in our portfolio.”

Financial Review

For the year ended December 31, 2012, WhiteHorse Finance reported net
investment income of $42.2 million and a net realized and unrealized loss on
investments of $2.6 million, resulting in an increase in net assets from
operations of $39.6 million.

For the quarter ended December 31, 2012, the Company reported net investment
income of $13.7 million and a net realized and unrealized loss on investments
of $5.8 million, resulting in an increase in net assets from operations of
$8.0 million.

NAV was $229.0 million as of December 31, 2012, resulting in an NAV per share
of $15.30.

Portfolio and Investment Activity

As of December 31, 2012, the fair value of WhiteHorse Finance’s investment
portfolio was $180.5 million, principally invested in seven portfolio
companies. The portfolio consisted of 100% senior secured term loans.

During the period from the IPO to December 31, 2012, one of the Company's
investments was repaid in full.

As of December 31, 2012, the weighted average current cash yield of the
portfolio was 14.2%.

Liquidity and Capital Resources

Primarily as a result of its IPO conducted in December 2012, WhiteHorse
Finance had cash and cash equivalents of $187.8 million as of December 31,
2012. In addition, as of December 31, 2012, the Company had $51.3 million in
outstanding borrowings under its $150.0 million revolving credit facility and
$90.0 million outstanding under its unsecured term loan.

Distributions

On December 17, 2012, the Company declared a dividend of $0.108 per share for
the quarter ended December 31, 2012. The dividend was payable on January 8,
2013 to stockholders of record as of December 28, 2012.

Distributions are paid from taxable earnings and may include return of capital
and/or capital gains. The specific tax characteristics of the distributions
will be reported to stockholders on Form 1099-DIV after the end of the
calendar year and in the Company's periodic reports filed with the Securities
and Exchange Commission.

Conference Call

WhiteHorse Finance will host a conference call to discuss its fourth quarter
and year-end earnings results at 10:00 a.m. ET on Tuesday, March 5, 2013. To
access the teleconference, please dial 706-758-9224 (domestic and
international) approximately 10 minutes before the teleconference’s scheduled
start time and reference ID# 97375458. Investors may also access the call on
the investor relations portion of the Company’s website at
http://www.whitehorsefinance.com/relations/index.php.

If you are unable to access the live teleconference, a replay will be
available beginning approximately two hours after the call’s completion
through March 12, 2013. The teleconference replay can be accessed by dialing
404-537-3406 (domestic and international) and entering ID# 97375458. A webcast
replay will also be available on the investor relations portion of WhiteHorse
Finance’s website at http://www.whitehorsefinance.com/relations/index.php.

About WhiteHorse Finance, Inc.

WhiteHorse Finance, Inc. is a business development company that originates and
invests in loans to privately held small-cap companies across a broad range of
industries. The Company’s investment activities are managed by its investment
adviser, H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital,
L.L.C. (“H.I.G. Capital”). H.I.G. Capital is a leading global alternative
asset manager managing approximately $11 billion of capital as of December 31,
2012 across a number of funds focused on the small-cap market. For more
information about H.I.G. Capital, please visit http://www.higcapital.com. For
more information about the Company, please visit
http://www.whitehorsefinance.com.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. Statements other than
statements of historical facts included in this press release may constitute
forward-looking statements and are not guarantees of future performance or
results and involve a number of risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as a result of
a number of factors, including those described from time to time in filings
with the Securities and Exchange Commission. The Company undertakes no duty to
update any forward-looking statement made herein. All forward-looking
statements speak only as of the date of this press release.

(Financial Tables Follow)


WhiteHorse Finance, Inc.

Consolidated Statement of Assets and Liabilities

(in thousands, except share and per share data)
                                                         
                                                             December 31, 2012
Assets
Investments, at fair value (cost $180,377)                 $ 180,488
Cash and cash equivalents                                    156,123
Restricted cash and cash equivalents                         31,646
Interest receivable                                          1,474
Deferred financing costs                                     3,184
Prepaid expenses and other receivables                       367
                                                            
Total assets                                               $ 373,282       
                                                             
Liabilities
Credit facility                                            $ 51,250
Unsecured term loan                                          90,000
Dividend payable                                             1,616
Management fees payable                                      306
Accounts payable and accrued expenses                        1,061
                                                            
Total liabilities                                          $ 144,233       
                                                             
Net assets
Common stock, par value $0.001 per share, 14,965,624       $ 15
shares issued and outstanding, 100,000,000 authorized
Paid-in capital in excess of par                             228,466
Undistributed net investment income                          1,164
Net realized loss on investments                             (71           )
Net unrealized depreciation on investments                  (525          )
Total net assets                                            229,049       
                                                            
Total liabilities and total net assets                     $ 373,282       
                                                             
Number of shares outstanding                                 14,965,624
Net asset value per share                                  $ 15.30

                                                     
WhiteHorse Finance, Inc.

Consolidated Statement of Operations

(in thousands, except share and per share data)
                                                        
                               For the period October   For the period January
                               1, 2012                  1, 2012
                               to December 31, 2012     to December 31, 2012
Investment income
Interest income                $     15,931           $     44,793     
Total investment income              15,931                   44,793
                                                        
Expenses
Interest expense                     1,131                    1,131
Organization costs                   310                      406
Base management fees                 306                      306
Administrative service fees          109                      109
Other operating expenses            347                   640        
Total expenses                       2,203                    2,592
                                                        
Net investment income                13,728                   42,201
                                                        
Realized and unrealized
(loss) gain on investments
Net realized loss on                 (489       )             (2,754     )
investments
Net change in unrealized            (5,264     )           111        
appreciation on investments
Net realized and unrealized         (5,753     )           (2,643     )
loss on investments
Net increase in net assets     $     7,975            $     39,558     
resulting from operations

Contact:

WhiteHorse Finance, Inc.
Alastair Merrick, 212-506-0500
amerrick@whitehorsefinance.com
or
Prosek Partners
Brian Schaffer, 212-279-3115
bschaffer@prosek.com
 
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