Business Context and Reporting Period
This Form 8-K Current Report was filed by WhiteHorse Finance, Inc. on March 18, 2024, covering events occurring on February 22, 2024. The Company is a Delaware corporation with principal executive offices in Miami, Florida, and its securities trade on the Nasdaq Global Select Market.
Key Financial Metrics
This filing does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity metrics. The report focuses exclusively on a contractual amendment regarding management fees.
Material Changes
The Company entered into a Second Amended and Restated Investment Advisory Agreement with H.I.G. WhiteHorse Advisers, LLC. The primary material change is a reduction in the base management fee, which is now calculated at an annual rate of 1.75% of the Company's consolidated gross assets (including cash and assets purchased with borrowed funds). This reduced fee rate is effective retroactively as of January 1, 2024.
Outlook and Management Commentary
Management commentary is limited to the disclosure of the fee reduction. The filing states that the new agreement is substantially the same as the prior agreement except for the reduced base management fee. No specific guidance, risk factors, or unusual items are detailed in this specific report.
Investor Verification Checklist
- Verify the exact terms of the Second Amended and Restated Investment Advisory Agreement in Exhibit 10.1.
- Confirm the impact of the 1.75% fee rate on future operating expenses compared to the prior rate.
- Review the Company's Annual Report on Form 10-K (filed March 5, 2024) for the full text of the agreement referenced in this filing.
- Assess whether the fee reduction aligns with broader industry trends for business development companies.