WhiteHorse Finance: Dividend Yield And Discount To NAV Deepen Radically

2026-03-04 01:32:42 ET

WhiteHorse Finance's ( WHF ) dividend yield has moved to close to its highest ever level as sustained weakness in its common shares and a deep discount to net asset value ("NAV") become its new zeitgeist in a market where private credit faces a tripartite of headwinds. This started off with Fed rate cuts, included "credit cockroaches" from September of last year following the high-profile collapse of First Brands Group and Tricolor, and now incorporates AI-driven fears of software credit termed the SaaSpocalypse. The income is the prize, and the BDC most recently declared a quarterly base cash dividend of $0.25 per share , unchanged from the prior distribution, and $1 per share for a 14.88% dividend yield. There was also a supplemental distribution of $0.01 per share. WHF had previously reduced its base dividend by 35% from $0.3850 per share in the final distribution of 2025, a move that places the BDC on an expanding list of BDCs that have recently cut their distributions in response to a Fed funds rate cut by 100 basis points in 2024, then 75 basis points in 2025. This list includes Golub Capital ( GBDC ), Stellus Capital ( SCM ), and BlackRock TCP Capital ( TCPC )....

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