WhiteHorse Finance Inc (WHF) 2026 Q1 法說會逐字稿

Good afternoon. My name is Chloe, and I will be your conference operator today. At this time, I would like to welcome everyone to the WhiteHorse Finance first-quarter 2026 earnings conference call.

下午好。我叫 Chloe，今天將擔任本次電話會議的接線員。此刻，我謹代表公司歡迎各位參加 WhiteHorse Finance 2026 年第一季財報電話會議。

Our hosts for today's call are Stuart Aronson, Chief Executive Officer; and Joyson Thomas, Chief Financial Officer. Today's call is being recorded, and a replay is available through a webcast in the Investor Relations section of our website at whitehorsefinance.com. (Operator Instructions)

今天電話會議的主持人為執行長 Stuart Aronson，以及財務長 Joyson Thomas。本次電話會議將被錄音，並可透過我們網站 whitehorsefinance.com 投資人關係專區的網路直播收聽重播。(接線員指示)

It is now my pleasure to turn the call over to Robert Brinberg of Rose & Company.

現在我很榮幸將電話會議交給 Rose & Company 的 Robert Brinberg。

Thank you, Chloe, and thank you, everyone, for joining us today to discuss WhiteHorse Finance's first-quarter 2026 earnings results.

謝謝你，Chloe，也謝謝各位今天加入我們，一同討論 WhiteHorse Finance 2026 年第一季的財報結果。

Before I begin, I'd like to remind everyone that certain statements, which are not based on historical facts made during this call, including any statements relating to financial guidance, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Because these forward-looking statements involve known and unknown risks and uncertainties, these are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. WhiteHorse Finance assumes no obligation or responsibility to update any forward-looking statements. Today's speakers may refer to material from the WhiteHorse Finance first-quarter 2026 earnings presentation, which was posted to our website this morning.

在我開始之前，我想提醒各位，本次電話會議中某些非基於歷史事實的陳述（包括任何與財務指引相關的陳述）可能構成《1995 年私人證券訴訟改革法》所定義的前瞻性陳述。由於這些前瞻性陳述涉及已知與未知的風險與不確定性，存在一些重要因素可能導致實際結果與這些前瞻性陳述所明示或暗示者出現重大差異。WhiteHorse Finance 不承擔更新任何前瞻性陳述的義務或責任。今天的講者可能會引用 WhiteHorse Finance 2026 年第一季財報簡報中的資料，該簡報已於今早發布於我們的網站。

With that, allow me to introduce WhiteHorse Finance's CEO, Stuart Aronson. Stuart, you may begin.

接下來，請容我介紹 WhiteHorse Finance 的執行長 Stuart Aronson。Stuart，請開始。

Thank you, Rob. Good afternoon, everyone, and thank you for joining us today. As you're aware, we issued our earnings this morning before the market opened, and I hope you've had a chance to review our results for the period ending March 31, 2026, which can also be found on our website.

謝謝你，Rob。各位下午好，感謝大家今天加入我們。如各位所知，我們已於今早開盤前發布財報；希望各位已經有機會檢視截至 2026 年 3 月 31 日期間的營運結果，相關資料也可在我們網站上查閱。

On today's call, I'll begin by addressing our first quarter results and current market conditions. Then Joyson Thomas, our Chief Financial Officer, will discuss our performance in greater detail, after which we will open the floor for questions.

在今天的電話會議中，我將先說明第一季的結果以及目前的市場狀況。接著，我們的財務長 Joyson Thomas 將更深入地討論我們的表現，之後我們將開放提問。

At a high level, our first quarter results reflected three main themes. One, previously flagged credit marks drove net realized and unrealized losses for the quarter; two, core earnings moderated, reflecting a lower portfolio yield in Q1, driven in part by one additional investment being placed on nonaccrual; and three, share repurchases provided a meaningful offset through NAV accretion.

整體而言，我們第一季的結果反映三個主要主題。第一，先前已提示的信用評價調整（credit marks）導致本季出現已實現與未實現淨損失；第二，核心盈餘有所趨緩，反映第一季投資組合收益率較低，部分原因是另有一項投資被列為停止計息（nonaccrual）；第三，庫藏股回購透過提升每股淨值（NAV）帶來顯著抵銷效果。

More specifically, our results for the first quarter of 2026 included net realized and unrealized losses that were largely consistent with the markdown we had forewarned investors about on our last shareholder call. As we shared on that call, we had three accounts where we expected markdowns this quarter, Honors Holdings, Outward Hound, and Lumen LATAM. And those positions drove the bulk of our net realized and unrealized losses for the quarter.

更具體而言，我們 2026 年第一季的結果包含已實現與未實現淨損失，整體上與我們在上一次股東電話會議中事先提醒投資人將出現的減記幅度大致一致。如同我們在那次會議中所分享的，本季我們預期有三個帳戶需要減記：Honors Holdings、Outward Hound，以及 Lumen LATAM。而這些部位構成了本季已實現與未實現淨損失的主要來源。

Q1 GAAP net investment income and core NII were $5.6 million or $0.253 per share compared with Q4 GAAP net investment income and core NII of $6.6 million or $0.287 per share. NAV per share at the end of Q1 was $11.47 compared with $11.68 at the end of Q4, a decrease of approximately 1.8%. The change in NAV reflected the net realized and unrealized losses of approximately $0.284 per share, partially offset by share repurchases that were accretive to NAV by approximately $0.08 per share. NAV was also impacted by distributions paid during the quarter, which included a $0.01 per share supplemental dividend.

第一季 GAAP 淨投資收益（NII）與核心 NII 為 560 萬美元，或每股 0.253 美元；相較之下，第四季 GAAP 淨投資收益與核心 NII 為 660 萬美元，或每股 0.287 美元。第一季末每股淨值（NAV）為 11.47 美元，第四季末為 11.68 美元，約下降 1.8%。NAV 的變動反映每股約 0.284 美元的已實現與未實現淨損失，部分被庫藏股回購所抵銷；回購對 NAV 的增厚約為每股 0.08 美元。本季支付的配息亦影響 NAV，其中包含每股 0.01 美元的補充股利。

We will continue our distribution policy framework that was previously discussed where the company intends to distribute a quarterly base distribution of $0.25 as well as make potential supplemental distributions above the base level in the future, pursuant to our distribution policy.

我們將延續先前討論過的配息政策架構：公司擬每季發放每股 0.25 美元的基本配息，並依據我們的配息政策，未來亦可能在基本水準之上發放補充配息。

Turning to shareholder value. Our shares have continued to trade at a meaningful discount to NAV, and both management and the Board remain focused on actions that we believe can help enhance shareholder value over time. So far, that focus has included disciplined portfolio positioning, selective capital deployment, accretive share repurchases and steps to support distributable earnings.

接著談股東價值。我們的股價持續以相對 NAV 的顯著折價交易，管理團隊與董事會仍專注於我們認為可隨時間提升股東價值的各項行動。迄今為止，這些重點包括嚴謹的投資組合配置、選擇性的資本投放、具增厚效果的庫藏股回購，以及支持可分配盈餘的措施。

As we discussed on our last call, the Board expanded the company's share repurchase program and late in the first quarter, we also implemented a 10b5-1 plan to allow us to continue executing on that authorization outside of our normal trading window in accordance with the plan's terms. We remained active under the program during Q1 and into Q2, and those repurchases were accretive to NAV, as I mentioned earlier. Joyson will provide additional detail on the quarter's repurchase activity.

如同我們在上次電話會議中所提到的，董事會擴大了公司的庫藏股回購計畫；並且在第一季末，我們也實施了一項 10b5-1 計畫，使我們能依據該計畫條款，在正常交易窗口之外持續執行該項授權。我們在第一季以及進入第二季後仍持續在該計畫下積極回購，而如我先前所述，這些回購對 NAV 具有增厚效果。Joyson 將就本季回購活動提供更多細節。

More broadly, while our stock continues to trade at a substantial discount to book value, we believe repurchasing shares remains one of the most attractive uses of capital available to us. At the same time, we're continuing to balance that opportunity against new investment activity and our targeted leverage levels.

更廣泛而言，雖然我們的股價仍以相對帳面價值的大幅折價交易，但我們認為回購股份仍是我們可用資本中最具吸引力的用途之一。同時，我們也持續在此機會與新投資活動及我們目標槓桿水準之間取得平衡。

In addition, the adviser has agreed to extend its temporary voluntary waiver of the incentive fee for the second quarter of 2026, reducing the applicable fee rate from 20% to 17.5%. We view that extension as another constructive step to support distributable earnings and shareholder value.

此外，投顧已同意將其臨時且自願的績效報酬（incentive fee）減免延長至 2026 年第二季，將適用費率由 20% 降至 17.5%。我們認為此項延長是另一項具建設性的措施，有助於支持可分配盈餘與股東價值。

As we have said previously, this fee waiver is temporary and any decision regarding future periods will be revisited based on the then current conditions and in consultation with the Board of Directors. We have been encouraged by the alignment shown through open market purchases by certain officers and directors, which we believe further reflects confidence in the underlying value of WhiteHorse Finance.

如同我們先前所說，這項費用減免屬於暫時性安排；任何關於未來期間的決定，將依當時的現況並與董事會協商後再行檢視。我們也樂見部分高階主管與董事在公開市場進行買入所展現的利益一致性；我們認為這也進一步反映其對 WhiteHorse Finance 基礎價值的信心。

Turning to our portfolio activity. We had gross capital deployments of $25.4 million in Q1, which was more than offset by repayments and sales of $38 million, resulting in net repayments of approximately $12.6 million before the effects of transferring assets into the STRS JV. Gross capital deployments consisted of three new originations totaling $18.5 million and the remaining accounts were deployed to fund add-ons to 12 existing investments.

接著談投資組合活動。第一季我們的資本投放總額為 2,540 萬美元，但被 3,800 萬美元的還款與出售所超過，因此在將資產轉入 STRS 合資企業（JV）的影響之前，淨還款約為 1,260 萬美元。資本投放總額包含三筆新承作（originations），合計 1,850 萬美元；其餘則用於對 12 項既有投資進行追加投資（add-ons）。

In addition, there was $0.7 million in net fundings on revolver commitments during the quarter. Of our three new originations in Q1, one was a non-sponsored deal and two were sponsor. The sponsor deals are targeted to be transferred to the STRS JV. Our new originations in Q1 had an average leverage of approximately 5.5x EBITDA. All of our Q1 deals were first lien loans. Pricing reflected competitive market conditions and our focus remained on structure and credit quality.

此外，本季在循環信貸承諾（revolver commitments）下的淨撥款為 70 萬美元。第一季三筆新承作中，一筆為非贊助（non-sponsored）交易，兩筆為贊助（sponsor）交易。這兩筆贊助交易預計將轉入 STRS JV。我們第一季新承作的平均槓桿約為 EBITDA 的 5.5 倍。我們第一季所有交易皆為第一順位擔保貸款（first lien loans）。定價反映競爭性的市場環境，而我們的重點仍放在交易結構與信用品質。

Total repayments and sales were primarily driven by complete or partial realizations in three portfolio companies, Trimlite, Monarch Collective Holdings and Lumen LATAM. During the quarter, the BDC transferred two new deals and two existing investments to the STRS JV totaling $18.9 million. At the end of Q1, the STRS JV portfolio had an aggregate fair value of $327.1 million and an average effective yield of 9.9%. We continue to successfully utilize the STRS JV and believe WhiteHorse's Finance equity investment in the JV continues to provide attractive returns for our shareholders.

還款與出售總額主要由三家投資組合公司的全部或部分退出所帶動：Trimlite、Monarch Collective Holdings，以及 Lumen LATAM。本季，該 BDC 將兩筆新交易與兩筆既有投資轉入 STRS JV，合計 1,890 萬美元。第一季末，STRS JV 投資組合的合計公允價值為 3.271 億美元，平均有效收益率為 9.9%。我們持續成功運用 STRS JV，並相信 WhiteHorse Finance 在該 JV 的股權投資持續為股東帶來具吸引力的報酬。

After net repayments and JV transfer activity as well as realized and unrealized losses recognized during the quarter, total investments decreased from the prior quarter by $35.6 million to $543 million. This compares to our portfolio's fair value of $578.6 million at the end of Q4.

在扣除淨償還、合資企業（JV）移轉活動，以及本季認列之已實現與未實現損失後，總投資較前一季減少3,560萬美元，降至5.43億美元。相較之下，我們投資組合於第四季末的公允價值為5.786億美元。

During the quarter, we recognized $4.7 million in net realized losses and approximately $1.6 million of net unrealized losses for an aggregate total of $6.3 million in net realized and unrealized losses in Q1, approximately $0.284 per share. The net mark-to-market losses were primarily driven by a $2.8 million unrealized loss in Honors Holdings, a $2.1 million unrealized loss in Outward Hound, partially offset by a $2.6 million gain from the reversal of unrealized losses on investment realizations and approximately $0.4 million of net markups across the portfolio.

本季我們認列淨已實現損失470萬美元，以及約160萬美元的淨未實現損失，第一季合計淨已實現與未實現損失為630萬美元，約每股0.284美元。淨按市價評價（mark-to-market）損失主要來自於Honors Holdings 280萬美元的未實現損失，以及Outward Hound 210萬美元的未實現損失，部分由投資實現時回轉未實現損失所帶來的260萬美元收益，以及投資組合整體約40萬美元的淨上調所抵銷。

In addition, we recognized realized losses primarily driven by a $3 million from Lumen LATAM sale as well as $1.1 million from a foreign exchange loss on the repayment of the Trimlite Canadian term loan and $0.2 million from the sale of the Therm-O-Disc asset.

此外，我們認列的已實現損失主要來自Lumen LATAM出售所產生的300萬美元，以及償還Trimlite加拿大定期貸款時因外匯損失產生的110萬美元，另有出售Therm-O-Disc資產所產生的20萬美元損失。

Importantly, the markdowns on Honors Holdings, Outward Hound and Lumen LATAM were the same three credits we identified for investors on our prior call as situations on which we expected to recur markdowns in the quarter. At the end of Q1, 98.8% of our debt portfolio was first lien, senior secured and our portfolio continued to reflect the balanced mix of sponsor and non-sponsor investments with non-sponsor representing approximately 38% of the portfolio at fair value.

重要的是，Honors Holdings、Outward Hound與Lumen LATAM的減記，正是我們在上一通電話會議中向投資人指出、預期本季將再次出現減記的三筆授信。第一季末，我們債務投資組合中有98.8%為第一順位留置權（first lien）、優先擔保；同時，我們的投資組合仍維持贊助方與非贊助方投資的均衡配置，非贊助方按公允價值約占投資組合的38%。

The weighted average effective yield on our income-producing debt investments decreased to 10.8% at the end of Q1 compared to 11% at the end of Q4. The weighted average effective yield on our overall portfolio also decreased to 8.7% at the end of Q1 compared to approximately 9.1% at the end of Q4, which was affected by the one new investment being put on nonaccrual during the quarter.

我們具收益之債務投資的加權平均有效收益率於第一季末降至10.8%，相較第四季末為11%。我們整體投資組合的加權平均有效收益率於第一季末亦降至8.7%，相較第四季末約為9.1%；此變動受到本季有一筆新投資被列為停止計息（nonaccrual）的影響。

With respect to nonaccrual status, Outward Hound was placed on nonaccrual during the quarter. And with the final sale of our residual position occurring this quarter, Therm-O-Disc was removed from our nonaccruals. Excluding the STRS JV, nonaccrual investments represented 3.6% of the total debt portfolio at fair value compared with 2.4% at fair value at the end of the prior quarter.

就停止計息狀態而言，Outward Hound於本季被列為停止計息。而隨著我們於本季完成出售剩餘持有部位，Therm-O-Disc已自停止計息名單中移除。排除STRS合資企業（JV）後，停止計息投資按公允價值占整體債務投資組合的3.6%，相較前一季末按公允價值為2.4%。

The four issuers on nonaccrual at quarter end were Honors Holdings, New Cycle Solutions, Outward Hound, and Playmonster. As always, we continue to do actively managed activities on our underperforming credits, leveraging our dedicated restructuring resources and the broader capabilities of H.I.G.

季末處於停止計息的四家發行人為Honors Holdings、New Cycle Solutions、Outward Hound，以及Playmonster。一如既往，我們持續對表現不佳的授信進行主動管理，運用我們專責的重整資源以及H.I.G.更廣泛的能力。

With respect to Outward Hound, we continue to work with the borrower and believe a debt restructuring is likely in coming months with an expectation that part of that asset will return to accrual status based on the new structure. Given the complexity of the process, we believe that outcome is more likely to occur next quarter than this quarter, although there can be no assurance until the restructuring is completed as to what will happen and when.

就Outward Hound而言，我們持續與借款人合作，並認為未來數月很可能進行債務重整；依據新的架構，預期該資產的一部分將恢復計息狀態。鑑於流程的複雜性，我們認為該結果更可能在下一季而非本季發生；然而，在重整完成之前，對於將發生何事以及何時發生，均無法作出任何保證。

On Honors Holdings, also known as Camarillo Fitness, the company continues to struggle, and we do not yet know whether we will have a further markdown this quarter. Lumen LATAM is now completely exited, so that situation is resolved. At this time, we are not aware of any further material markdowns beyond what I have just described.

至於Honors Holdings（亦稱Camarillo Fitness），公司仍持續面臨困境，我們目前尚不確定本季是否會進一步減記。Lumen LATAM現已完全退出，因此該情況已解決。截至目前，除我剛才所述之外，我們未察覺任何其他重大減記。

Aside from the credits on nonaccrual, our portfolio continues to perform well, and our portfolio reviews on any companies where there is underperformance, we are seeing private equity owners support those credits with new equity, which is an indication from the private equity firms that they have confidence in those companies and borrowers.

除停止計息的授信外，我們的投資組合持續表現良好；在我們對任何出現表現不佳的公司進行投資組合檢視時，我們看到私募股權持有人以新增股權支持這些授信，這顯示私募股權公司對這些公司與借款人具備信心。

I would also note that consistent with what we shared last quarter, we have modest exposure to the Internet or software companies, the BDC software exposure across six portfolio names represents approximately 11.1% of the portfolio at cost and 9.9% at fair value.

我也要指出，與我們上季分享的一致，我們對網際網路或軟體公司的曝險不高；本BDC在六個投資標的上的軟體曝險，按成本約占投資組合的11.1%，按公允價值約占9.9%。

Market conditions remain competitive, although for several months, geopolitical events had slowed the M&A market with transaction volume being lower than normal. That said, over the past few weeks, we've seen a recovery in deal flow volumes, and our team is currently working on deals at close to 100% of capacity. Negative press around direct lending and private credit has resulted in a shift in supply and demand, particularly on larger deals.

市場環境仍具競爭性，儘管過去數月地緣政治事件使併購（M&A）市場放緩，交易量低於正常水準。然而，過去幾週我們看到案源量回升，目前團隊正以接近100%的產能在推進交易。圍繞直接放貸與私募信貸的負面報導，已導致供需出現變化，尤其是在較大型交易上。

On the smaller deals as a result pricing is up 25 to 50 basis points. And on the midsize and larger deals, pricing is up more like 50 to 100 basis points, with most of that movement being on sponsor side, where prices had compressed, and we had previously shared with the market that pricing was very aggressive.

在較小型交易方面，因此定價上升25至50個基點。而在中型與較大型交易方面，定價上升更接近50至100個基點；其中多數變動發生在贊助方（sponsor）端，因為先前價格已被壓縮，而我們也曾向市場分享當時定價非常激進。

In the lower mid-market, we're seeing pricing of SOFR 475 to 525. In the mid-market sponsor pricing is SOFR 500 to 550. And in the larger cap market, pricing of SOFR plus 500 to 575. The non-sponsor market remains stable at pricing of SOFR plus 600 and above. We are also highly focused on minimizing liability management execution risk in new investments and our portfolio.

在下中型市場（lower mid-market），我們看到的定價為SOFR加475至525。在中型市場的贊助方交易，定價為SOFR加500至550。在大型資本市場（larger cap market），定價為SOFR加500至575。非贊助方市場仍維持穩定，定價為SOFR加600以上。我們也高度專注於在新投資及既有投資組合中，將負債管理執行風險降至最低。

For investors less familiar with the term, LME risk refers to the risk that a borrower can move assets away from the existing lenders and pledge them to new lenders effectively subordinating the original senior debt. We are working to ensure that structures and documentation provide adequate protection against this risk.

對較不熟悉此術語的投資人而言，LME風險係指借款人可能將資產自既有放款人移出，並將其質押給新的放款人，從而實質上使原本的優先債務順位被下移（subordinating）。我們正致力確保交易架構與文件能提供足夠的保護，以防範此風險。

Looking forward, there is too much geopolitical and consumer sentiment uncertainty to have any clarity as to where the market is going to be in the balance of the year. What I would say is that the mid-market and lower mid-market that we participate in continue to function other than the slight price increase and conservatism on credit standards, including extremely high conservatism on anything software related, the markets are functioning.

展望未來，地緣政治與消費者情緒的不確定性過高，使得我們無法清楚判斷今年剩餘期間市場將走向何方。我想說的是，我們所參與的中型與下中型市場仍持續運作；除了價格小幅上升以及信貸標準更為保守（包括對任何與軟體相關的案件極度保守）之外，市場仍在運行。

In the non-sponsor market conditions remain stable and less competitive than in the sponsor market. Average leverage is approximately 4x to 4.5x and pricing continues to be generally at SOFR plus 600 and above with our non-sponsored portfolio performing as well as or better than our sponsor portfolio.

在非贊助方市場，市場狀況仍穩定，且競爭程度低於贊助方市場。平均槓桿約為4倍至4.5倍，定價一般仍為SOFR加600以上；我們的非贊助方投資組合表現與贊助方投資組合相當，甚至更佳。

We continue to focus significant resources on the non-sponsored market where there is better risk return in many cases and much less competition than what we're seeing in the sponsor market. We currently have 21 originators covering 12 regional markets.

我們持續將大量資源投入非贊助方市場，因為在許多情況下其風險報酬更佳，且競爭遠低於我們在贊助方市場看到的情況。我們目前有21位承作人員（originators），覆蓋12個區域市場。

Given market conditions, we are looking for good risk return across the market and finding surprisingly good opportunities. Additionally, we continue to expect a normal level of repayment activity over time, although actual repayment timing will be driven by M&A, refinancing activity and company-specific situations.

鑑於市場狀況，我們在整體市場中尋求良好的風險報酬，並發現出乎意料的良好機會。此外，我們仍預期隨時間推移會出現正常水準的償還活動，惟實際償還時點將取決於併購（M&A）、再融資活動以及公司個別情況。

As for our pipeline, we currently have 10 deals mandated. Of those 10 deals, four are non-sponsor and six are sponsor. All of the non-sponsored deals are priced at SOFR plus 600 or above. And all of the sponsor deals will be targeted for the STRS JV and all of the non-sponsor deals are targeted for the balance sheet of the BDC. While there can be no assurance that any of these deals will close or whether we have room in the BDC for any of all of those deals, we will be assessing capacity based on repayments and the availability of capital to continue the share buyback.

至於我們的案源（pipeline），目前有10筆交易已取得委任（mandated）。在這10筆交易中，4筆為非贊助方、6筆為贊助方。所有非贊助方交易的定價皆為SOFR加600或以上。且所有贊助方交易將以STRS合資企業（JV）為目標，而所有非贊助方交易則以BDC的資產負債表為目標。雖然無法保證任何交易一定會完成，或我們的BDC是否有空間承作其中任何或全部交易，但我們將依據償還情況以及可用資本（以持續進行庫藏股回購）來評估承作容量。

Subsequent to quarter end, no deals have closed in the BDC, with capital reserved for share buybacks, the BDC's remaining capacity is very limited, at approximately $15 million for new assets on the balance sheet after reserving roughly $11 million for the share repurchase program. At the end of the first quarter, the STRS JV's remaining capacity was approximately $35 million and pro forma for recently mandated deals to eventually be transferred and anticipated repayments, the JV's capacity is approximately only $10 million.

在季度結束後，BDC 尚未有任何交易完成；由於資本已預留用於股票回購，BDC 的剩餘可用額度非常有限，在為股票回購計畫預留約 1,100 萬美元後，資產負債表上可用於新增資產的額度約為 1,500 萬美元。在第一季末，STRS 合資企業（JV）的剩餘可用額度約為 3,500 萬美元；若按近期已被要求、最終將移轉的交易以及預期還款進行備考調整後，該 JV 的可用額度約僅為 1,000 萬美元。

With that, I'll turn the call over to Joyson for additional performance details and a review of our portfolio composition. Joyson?

接下來，我把電話交給 Joyson，請他補充更多績效細節並回顧我們的投資組合構成。Joyson？

Thanks, Stuart, and thanks, everyone, for joining today's call. During the quarter, we reported GAAP net investment income and core NII of $5.6 million or $0.253 per share. This compares with Q4 GAAP NII and core NII of $6.6 million or $0.287 per share, as well as our previously declared first quarter base distribution of $0.25 per share and a supplemental distribution of $0.01 per share.

謝謝你，Stuart，也謝謝各位參加今天的電話會議。本季我們公布 GAAP 淨投資收益以及核心 NII 為 560 萬美元，或每股 0.253 美元。相較之下，第四季 GAAP NII 與核心 NII 為 660 萬美元，或每股 0.287 美元；此外也對照我們先前宣告的第一季每股 0.25 美元基本配息，以及每股 0.01 美元的補充配息。

Q1 fee income was approximately $0.4 million compared with $0.8 million in the prior quarter, driven primarily by a $0.1 million prepayment fee from Monarch Collective and a $0.1 million amendment fee from US Petroleum Partners. The prior quarter's fee income included a nonrecurring prepayment fee of $0.3 million received in connection with the prepayment exit of ELM in that quarter.

第一季費用收入約為 40 萬美元，較前一季的 80 萬美元下降，主要來自 Monarch Collective 的 10 萬美元提前清償費，以及 US Petroleum Partners 的 10 萬美元修約費。前一季的費用收入包含一筆非經常性的 30 萬美元提前清償費，係與該季 ELM 提前清償退出相關而取得。

For the quarter, we reported a net decrease in net assets resulting from operations of $0.7 million. Our risk ratings during the quarter showed that approximately 88.3% of our portfolio positions either carried a 1 or 2 rating, an increase from the 85.9% reported in the prior quarter.

本季我們因營運所致之淨資產淨減少為 70 萬美元。本季風險評等顯示，我們投資組合中約 88.3% 的部位評等為 1 或 2，較前一季報告的 85.9% 提升。

Upgrades during the quarter included our investments in Claridge, which were upgraded from a 3 to a 2 rating while downgrades were primarily driven by moving our position in UserZoom from a 2 to 3 rating. As a reminder, a 1 rating indicates that a company has seen its risk of loss reduced relative to initial expectations and a 2 rating indicates the company is performing according to such initial expectations.

本季的升評包括我們對 Claridge 的投資，評等由 3 上調至 2；而降評主要是因將我們在 UserZoom 的部位由 2 調降至 3。提醒各位，評等 1 代表相較於初始預期，公司之損失風險已降低；評等 2 代表公司表現符合該等初始預期。

Regarding the JV specifically, we continue to utilize the platform as a complement to the BDC. As Stuart mentioned earlier, we transferred two new deals and two existing investments during the first quarter to the STRS JV totaling $18.9 million. During the quarter, the JV had three portfolio investments fully repaid. And as of March 31, 2026, the JV's portfolio held positions in 42 portfolio companies with an aggregate fair value of $327.1 million, compared to an aggregate fair value of $323.6 million as of December 31, 2025.

就 JV 而言，我們持續將該平台作為 BDC 的補充。如 Stuart 先前提到，我們在第一季將兩筆新交易與兩筆既有投資移轉至 STRS JV，合計 1,890 萬美元。本季 JV 有三項投資組合投資已全數償還。截至 2026 年 3 月 31 日，JV 投資組合持有 42 家投資組合公司的部位，合計公允價值為 3.271 億美元；相較之下，截至 2025 年 12 月 31 日的合計公允價值為 3.236 億美元。

Leverage for the JV at the end of Q1 was 1.08x compared with 1.07x at the end of the prior quarter. The investment in the JV continues to be accretive for the BDC's earnings, generating a low teens return on equity. During Q1, income recognized from our JV investment aggregated to approximately $3.6 million compared to approximately $3.8 million reported in Q4.

JV 於第一季末的槓桿為 1.08 倍，前一季末為 1.07 倍。對 JV 的投資持續對 BDC 的盈餘具增益效果，產生約低十位數百分比的股東權益報酬率。第一季我們自 JV 投資認列的收入合計約 360 萬美元，較第四季約 380 萬美元略低。

As we have noted in prior calls, the yield on our investment in the JV may fluctuate period-over-period as a result of a number of factors, including the timing and amount of additional capital investments, changes in asset yields in the underlying portfolio, and the overall credit performance of the JV's investment portfolio.

如我們在先前電話會議中所提到，我們對 JV 的投資殖利率可能因多項因素而在各期之間波動，包括追加資本投資的時點與金額、底層投資組合資產殖利率的變動，以及 JV 投資組合的整體信用表現。

Turning to our balance sheet now. We had cash resources of approximately $49.4 million at the end of Q1, including $37.6 million restricted cash representing interest and principal proceeds received at quarter end as well as approximately $11.8 million at the fund level reserved for the quarterly distribution that was paid in early April as well as for share repurchases. Cash balances at the end of Q1 were elevated due to realizations on our investments as well as the JV transfers outpacing deployments during the quarter.

接著看我們的資產負債表。第一季末我們的現金資源約為 4,940 萬美元，其中包括 3,760 萬美元的受限制現金，代表於季末收到的利息與本金款項；另約 1,180 萬美元在基金層級預留，用於於 4 月初支付的季度配息以及股票回購。第一季末現金餘額偏高，係因我們投資的變現，以及 JV 移轉金額在本季超過資金部署所致。

As of March 31, 2026, the company's asset coverage ratio for borrowed amounts as defined by the 1940 Act was 176.2%, which was above the minimum asset coverage ratio of 150%. At quarter end, gross leverage was 1.31x compared with 1.26x in the prior quarter, while our net effective debt-to-equity ratio after adjusting for cash on hand was 1.12x compared with 1.15x in the prior quarter. The decline in net effective leverage relative to the increase in gross leverage primarily reflected higher cash amounts on the balance sheet at quarter end as a result of the repayments that Stuart and I noted earlier.

截至 2026 年 3 月 31 日，依 1940 年法案所定義之借款金額資產覆蓋率為 176.2%，高於最低資產覆蓋率 150%。季末總槓桿為 1.31 倍，前一季為 1.26 倍；而在調整手上現金後，我們的淨有效負債對股東權益比率為 1.12 倍，前一季為 1.15 倍。淨有效槓桿下降而總槓桿上升，主要反映季末資產負債表上的現金增加，係因 Stuart 與我先前提到的還款所致。

In regards to our share repurchase program, the company repurchased approximately 412,000 shares during Q1 at a weighted average price of approximately $7.31 per share, which was accretive to NAV by approximately $0.08 per share. Subsequent to quarter end and through the market close of yesterday, the company has repurchased an additional approximately 210,000 shares.

關於我們的股票回購計畫，公司於第一季以每股約 7.31 美元的加權平均價格回購約 41.2 萬股，使每股淨資產價值（NAV）約增加 0.08 美元。在季度結束後，並截至昨日收盤，公司另已額外回購約 21.0 萬股。

Cumulatively, since the inception of our share repurchase program, beginning in the fourth quarter of 2025, we estimate that our buybacks have contributed to approximately $0.31 per share of NAV accretion, demonstrating our commitment to creating shareholder value.

累計而言，自我們於 2025 年第四季啟動股票回購計畫以來，我們估計回購已為每股 NAV 帶來約 0.31 美元的增益，展現我們致力於為股東創造價值的承諾。

As Stuart noted earlier, certain company insiders and affiliates also purchased shares in the open market during the quarter, further demonstrating our view of WhiteHorse Finance's current market valuation.

如 Stuart 先前所述，部分公司內部人士及關係企業亦於本季在公開市場買入股票，進一步展現我們對 WhiteHorse Finance 目前市場估值的看法。

Before I conclude and open up the call to questions, I'd like to discuss our recent distributions in corresponding distribution policy. This morning, we announced that our Board declared a second quarter base distribution of $0.25 per share. The distribution will be payable on July 6, 2026, to stockholders of record as of May 21, 2026. As we said previously, we will continue to evaluate our quarterly distribution, both in the near and medium term based on the core earnings power of our portfolio in addition to other relevant factors that may warrant consideration.

在我結束並開放提問之前，我想談談我們近期的配息以及相應的配息政策。今天早上，我們宣布董事會宣告第二季每股 0.25 美元的基本配息。該配息將於 2026 年 7 月 6 日支付給截至 2026 年 5 月 21 日登記在冊的股東。如我們先前所說，我們將在近期與中期持續評估季度配息，評估基礎除投資組合的核心獲利能力外，亦會考量其他可能需要納入評估的相關因素。

With that, I'll now turn the call back over to the operator for your questions. Operator?

接下來，我把電話交回給接線員，開始回答各位的問題。接線員？

(Operator Instructions)

（接線員指示）

Heli Sheth, Raymond James.

Heli Sheth，Raymond James。

On the buybacks, how are you considering repurchasing shares on a go-forward basis in terms of weighing buybacks versus deployment, especially if the more muted M&A market that we're -- we've seen recently persists?

關於回購，往後在衡量回購與資金部署之間的取捨時，你們會如何考量？尤其如果我們最近看到的較為低迷的併購市場持續下去的話？

Yes. Again, the M&A market has picked up in the last three to four weeks. Pricing is higher than we've seen on deals in about 2, 2.5 years. So the assets that we're seeing right now are on a relative basis, pretty attractive. That said, with our shares trading at roughly a 35% discount to NAV, we do get more lift from deploying money into share buybacks.

是的。再說一次，併購市場在過去三到四週已經回溫。交易定價比我們在大約 2 年到 2.5 年來看到的都更高。因此，就相對而言，我們目前看到的資產相當具吸引力。不過，鑑於我們的股價約以 NAV 35% 的折價交易，把資金用於股票回購能帶來更大的提升效果。

So with the shares where they are now or close to where they are now, my anticipation is we will continue to buy back shares, and we do have plenty of capacity left after having increased the allocation to share buybacks last quarter.

因此，以目前股價所在水準或接近目前水準來看，我的預期是我們將會持續回購股份，而且在上季提高股份回購配置之後，我們仍有相當充足的剩餘額度。

Got it. I appreciate the color. And then on the pipeline, what are you sort of expecting for the pipeline for the remainder of the year? And are you seeing anything different there in terms of industry sector mix of incumbent versus new borrowers, anything along those lines?

了解。感謝你提供的補充說明。接著關於案源管線（pipeline），你們對今年剩餘時間的管線有什麼樣的預期？另外，在產業部門組合、既有借款人相較於新借款人等方面，你們是否看到任何不同的變化，或類似的情況？

We're seeing a good flow of opportunities in both the sponsor and non-sponsor market. It's a little bit surprising that due to market liquidity issues, the pricing on smaller deals is as low or lower than the pricing on larger deals. And that has us currently biased towards the mid-market and upper mid-market deals where the structures are more conservative based on geopolitical disruption and the pricing, again, is higher than on the smaller deals.

我們在有贊助商與無贊助商市場都看到不錯的機會流量。有點令人意外的是，由於市場流動性問題，小型交易的定價竟然與大型交易一樣低，甚至更低。因此，我們目前較偏好中型市場與中大型市場的交易，因為在地緣政治擾動下，這些交易的結構更為保守，而且其定價（再次強調）也高於小型交易。

That said, we think the geopolitical situation is highly unpredictable. And notwithstanding the fact that until today, the stock market has been very optimistic about what's going on. We think there's a lot of volatility risk. And as I mentioned in my prepared remarks, we really can't give you an assessment of where the market will be going forward. The only assessment I can offer is that today's market in terms of pricing and deal structures tends to be more conservative than what we've seen in the past couple of years. So again, it's more attractive.

話雖如此，我們認為地緣政治情勢高度不可預測。儘管截至今天，股市對正在發生的事情一直非常樂觀。我們認為波動風險很大。正如我在事先準備的發言中提到的，我們確實無法對未來市場走向給出評估。我唯一能提供的評估是：就定價與交易結構而言，當前市場往往比過去幾年我們所見更為保守。因此，再次強調，它更具吸引力。

In terms of industries, we're not seeing very much on the software technology side and the things we are seeing, we're being very, very cautious about given the ongoing concerns with what AI will do to displacing existing leaders in the technology community. We are seeing a nice mix of both industrial credits and business service credits with volatility, economic cyclicality risk that ranges from anywhere moderate down to very low. But again, we are seeing better deal flow now by far than what we were seeing two or three months ago.

就產業而言，我們在軟體科技端看到的不多；而對於我們看到的部分，鑑於市場持續擔憂 AI 將如何取代科技社群中既有領導者，我們會非常、非常謹慎。我們看到工業類信貸與商業服務類信貸的組合相當不錯，其波動性、景氣循環風險從中等到非常低不等。但再次強調，現在看到的交易流量遠遠好於兩三個月前。

(Operator Instructions)

(接線員指示)

Christopher Nolan, Ladenburg Thalmann.

Christopher Nolan，Ladenburg Thalmann。

Is there any limit to what you can take your -- the percentage of the total portfolio occupied by the JV?

你們能承擔的——JV 佔整體投資組合比例——是否有任何上限？

Yes. The equity in the JV is considered a bad asset vis-a-vis the 30% bad asset limit we have and all BDCs have. That said, we are nowhere near that limit right now. And we have the BDC representing most of the use of the capacity of that 30%. We think it would be unlikely that we would change the size of the JV in the near future, though.

有。就我們所適用的 30% 不良資產上限（所有 BDC 都有）而言，JV 的股權被視為不良資產。不過，我們目前離該上限還差得很遠。而且目前主要是 BDC 本身在使用那 30% 額度的大部分容量。我們認為在短期內不太可能改變 JV 的規模。

All right. Well, your portfolio is $578 million, no -- 30% of that is $173 million, and your equity in the JV is roughly $55 million, $57 million. So you have a lot of space to grow that JV. I guess my real question is, it seems that you're running off first lien loans. And so the percentage that the JV occupies is higher.

好的。你的投資組合是 5.78 億美元，30% 是 1.73 億美元，而你們在 JV 的股權大約是 5,500 萬到 5,700 萬美元。所以你們有很大的空間可以擴大那個 JV。我真正的問題是，看起來你們的一順位（first lien）貸款正在自然到期/縮減。因此 JV 所佔的比例就更高了。

And also given the JV is generating attractive returns, you're sort of in this interesting spot where it's accretive to actually not only buy back your own shares, but because the increasing percentage from the JV that you're getting a higher-yielding asset overall. Is that the way you're looking at it? Or am I missing something?

另外，考量到 JV 正在產生具吸引力的報酬，你們似乎處在一個有趣的位置：回購自家股票不僅具增益性（accretive），而且因為你們從 JV 取得的占比提高，整體資產也變成更高收益率的資產。你們是這樣看待的嗎？還是我漏掉了什麼？

We see the JV as positive and accretive, which is why we have grown the JV over time. And yes, as we buy back shares, using on-balance sheet liquidity. The JV is a slightly larger percentage of the overall portfolio. But again, in terms of dollars committed to the JV at the moment, we do not intend to make any changes.

我們認為 JV 是正面且具增益性的，這也是我們隨時間擴大 JV 的原因。而且是的，當我們使用資產負債表內的流動性回購股份時，JV 會成為整體投資組合中稍微更高的比例。但再次強調，就目前承諾投入 JV 的金額而言，我們不打算做任何變動。

Okay. And should we expect the overall size of the BDC investment portfolio to decline in coming quarters?

了解。那麼，我們是否應該預期 BDC 投資組合的整體規模在未來幾季會下降？

At current share price levels, see buybacks as highly accretive. If we start running short on buyback capacity, the management company and the Board will discuss whether it makes sense to allocate additional capital into share buybacks. But at the moment, as I mentioned earlier, there's plenty of capital for the share buybacks. And so we have not taken any additional actions from last quarter. Go ahead, Joyson.

以目前股價水準來看，我們認為回購具有高度增益性。如果我們開始接近回購額度不足，管理公司與董事會將討論是否有必要將更多資本配置到股份回購。但就目前而言，如我先前提到的，回購仍有充足資本。因此，自上季以來我們沒有採取任何額外行動。Joyson，你接著說。

I was just going to add, with respect to the JV specifically, it's a total $175 million program between ourselves and STRS Ohio, of which of the $175 million commitments, we still have $14 million that's uncalled. And so that includes both the traditional equity investment as well as that subordinated debt investment that's structured as part of our $175 million commitments in total.

我只是補充一下，特別就 JV 而言，這是一個我們與 STRS Ohio 之間合計 1.75 億美元的計畫；在這 1.75 億美元的承諾額中，目前仍有 1,400 萬美元尚未被動用（uncalled）。而這包含傳統的股權投資，以及作為我們合計 1.75 億美元承諾之一部分所設計的次順位債務投資。

Okay. Is the plan to tap that additional equity?

了解。計畫是要動用那額外的股權嗎？

That's correct, right? So if you think about it, for instance, with the prior quarter, we had three realizations in the STRS JV portfolio. So by and large, the transfers that we had sent down to the JV were funded by those excess proceeds. And so as we kind of tap out on leverage and any excess cash available at the JV level, we would then call and deploy that remaining $14 million.

沒錯，對吧？例如，如果你回想上一季，我們在 STRS JV 投資組合中有三筆退出/實現（realizations）。因此，大致上，我們下撥到 JV 的資金是由那些超額回收款（excess proceeds）所提供。而當我們在 JV 層級的槓桿用到上限、且任何可用的超額現金也用得差不多時，我們就會再去催繳並部署剩餘的那 1,400 萬美元。

(Operator Instructions) And it does appear that there are no further questions at this time. Thank you. This does conclude today's meeting. We appreciate your time and participation. You may now disconnect.

(接線員指示)目前看起來沒有其他問題。謝謝。今天的會議到此結束。感謝各位撥冗與會。您現在可以掛線。