424B3 1 d775871d424b3.htm 424B3 424B3

Filed Pursuant to Rule 424(b)(3)
Registration No. 333-185676

TRILINC GLOBAL IMPACT FUND, LLC

SUPPLEMENT NO. 6 DATED AUGUST 18, 2014

TO THE PROSPECTUS DATED APRIL 15, 2014

This prospectus supplement (“Supplement”) is part of and should be read in conjunction with the prospectus of TriLinc Global Impact Fund, LLC (the “Company”), dated April 15, 2014, as supplemented by Prospectus Supplement No. 1, dated May 19, 2014, Prospectus Supplement No. 2, dated June 30, 2014, Prospectus Supplement No. 3, dated July 7, 2014, Prospectus Supplement No. 4, dated July 23, 2014, and Prospectus Supplement No. 5, dated July 28, 2014 (the “Prospectus”).

The purposes of this Supplement are as follows:

 

A. To provide information regarding our public offering;

 

B. To provide information regarding distributions declared;

 

C. To update the section of the Prospectus titled “Business;” and

 

D. To update the section of the Prospectus titled “Management of the Company.”

 

A. Status of Our Public Offering

As of August 15, 2014, we had raised gross proceeds of approximately $42.2 million from the sale of approximately 4.5 million units of our limited liability company interest, including units issued pursuant to our distribution reinvestment plan.

 

B. Declaration of Distributions

On August 8, 2014, with the authorization of our board of managers, the Company declared distributions for all classes of units for the period from August 1 through August 31, 2014. These distributions will be calculated based on unitholders of record for each day in an amount equal to $0.00197808 per unit per day (less the distribution fee with respect to Class C units). On or around September 4, 2014, these distributions will be paid in cash, or reinvested in the Company’s units for those investors participating in the Company’s unit reinvestment plan. Some or all of the Company’s distributions have been and may continue to be paid from sources other than cash flow from operations, such as capital contributions from the Sponsor, cash resulting from a waiver or deferral of fees, and/or proceeds from this offering.

 

C. Update to the Section Titled “Business”

 

1. The following information updates and supplements the “Business — Investments — Overview” section of the Prospectus to provide certain information regarding the Company’s investment portfolio as of July 31, 2014:

Investments

Since the Company commenced operations and through July 31, 2014, the Company has funded in excess of $40.9 million in term loans and trade finance facilities. Given the Company’s weighted average portfolio duration of less than a year, a significant portion of the secured borrower debt has paid off and been reinvested in new transactions.


As of July 31, 2014, the Company had the following investments:

 

Description   Sector   Country   Investment
Type
  Maturity   Interest
Rate1
   

Total

Loan
Commitment2

   

Total

Amount
Outstanding3

   

Primary

Impact
Objective

Agriculture Distributor

  Agricultural Products   Argentina   Trade Finance   7/28/2015     9.00   $ 5,000,000      $ 5,000,000      Job Creation

Beef Exporter

  Meat, Poultry & Fish   Argentina   Trade Finance   6/4/2015     11.98   $ 5,000,000      $ 4,000,000      Job Creation

Consumer Goods Distributor

  Packaged Foods & Meats   Namibia   Trade Finance   11/15/2014     12.50   $ 2,000,000      $ 2,000,000      Job Creation

Dairy Co-Operative

  Consumer Products   Argentina   Trade Finance   8/1/2014     10.33   $ 5,000,000      $ 3,142,820      Job Creation

Diaper Manufacturer

  Personal Products   Peru   Term Loan   07/15/2016     13.10   $ 2,750,000      $ 2,750,000      Job Creation

Fertilizer Distributor

  Fertilizers & Agricultural Chemicals   Zambia   Trade Finance   10/6/2014     12.00   $ 3,000,000      $ 3,000,000      Agricultural
Productivity &
Food Security

Food Processor

  Food Products   Peru   Term Loan   11/29/2014     13.00   $ 464,000      $ 464,000      Job Creation

Frozen Seafood Exporter

  Meat, Poultry & Fish   Ecuador   Trade Finance   09/21/2014     12.55   $ 500,000      $ —        Job Creation

Fruit & Nut Distributor

  Food Products   South Africa   Trade Finance   10/2/2014     17.50   $ 1,250,000      $ 1,250,000      Job Creation

Insulated Wire Manufacturer

  Electrical Equipment   Peru   Trade Finance   9/25/2014     8.00   $ 3,000,000      $ 1,991,000      Job Creation

International Tuna Exporter

  Meat, Poultry & Fish   Ecuador   Trade Finance   10/18/2014     12.46   $ 3,000,000      $ —        Job Creation

Meat Processor

  Meat, Poultry & Fish   South Africa   Trade Finance   11/1/2014     12.50   $ 1,000,000      $ 1,000,000      Job Creation

Rice & Bean Importer

  Food Products   South Africa   Trade Finance   10/30/2014     12.50   $ 1,000,000      $ 1,000,000      Agricultural
Productivity &
Food Security

Sugar Producer

  Agricultural Products   Brazil   Term Loan   12/15/2016     12.43   $ 3,000,000      $ 3,000,000      Capacity-

Building

Textile Distributor

  Textiles, Apparel & Luxury Goods   South Africa   Trade Finance   11/3/2014     15.00   $ 1,500,000 4    $ 420,000      Equality &
Empowerment

Timber Exporter

  Forest Products   Chile   Trade Finance   7/31/2014     9.85   $ 500,000      $ —        Job Creation
Portfolio Totals             $ 37,964,000      $ 29,017,820     

 

1  Interest rates are as of July 31, 2014. Interest rates include contractual rates and accrued fees where applicable.
2 The total loan commitment represents the maximum amount that can be borrowed under the agreement. The actual amount drawn on the loan by the borrower may change over time.
3 The total amount outstanding represents the actual amount borrowed under the loan as of July 31, 2014. In some instances where there is a $0 balance, the borrower may have paid back the original amount borrowed under a trade finance facility and under an agreement, may borrow again.
4  In addition, on August 12, 2014, the Company funded a $286,000 draw against an existing revolving trade finance facility at a fixed interest rate of 15.00% to a South African textile distributor. The transaction, set to mature on November 4, 2014, is secured by specific clothing inventory being imported into South Africa from Asia and sold to large retailers.

Certain Portfolio Characteristics

 

Total Assets (est.):

   $ 33,552,039   

Current Loan Commitments:

   $ 37,964,000   

Leverage:

     0

Average Portfolio Loan Size:

   $ 3,044,960   

Weighted Average Portfolio Duration1:

     0.93 years   

Weighted Average Position Yield:

     11.5

USD Denominated:

     100

Countries2:

     8   

 

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1  Duration is calculated through the average turn of trade finance transactions and the contracted amortization of term loans.
2  The figure represents all countries where the Company has a loan commitment as of July 30, 2014. Due to the revolving debt nature of trade finance facilities and the timing of funding, it is possible that certain commitments currently have a zero outstanding balance and would therefore not be represented in the Developing Economies chart below, which represents invested capital.

Top Five Investments by Percentage

Company Description    Country    % of Net Assets  

Agricultural Distributor

   Argentina      14.9

Beef Exporter

   Argentina      11.9

Dairy Co-Operative

   Argentina      9.4

Sugar Producer

   Brazil      8.9

Fertilizer Distributor

   Zambia      8.9

 

LOGO

 

2. The following information updates and supplements the “Business — Investments — Overview—Impact Overview” section of the Prospectus to provide impact overview of the Company’s investment portfolio as of June 30, 2014:

Impact Overview as of June 30, 2014

The Company’s borrower companies currently employ a total of 10,423 employees.

 

Percentage of TriLinc borrowers that:   

Comply with local environmental, labor, health, safety and business laws, standards and regulations

     100

Demonstrate their positive impact on the community through community service and/or community donations

     90

Commit to working towards implementing international environmental and health and safety best practices

     100

Implement environmentally sustainable practices, including energy savings, waste reduction and/or water conservation

     90

Top 5 Borrower Impact Objectives:

(may total over 100% as borrowers can choose multiple)

  

Job Creation

     90

Agricultural Productivity & Food Security

     30

Capacity Building

     20

Health Improvement

     10

Wage Increase

     10

Additional Borrower Impact Highlights:

  

Percentage of employees receiving training or technical assistance

     41

Percentage of female employees

     20

 

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Brazilian Sugar Producer

 

Security Type:    Term Loan
Structure:    Three Year Term Loan Due 12/15/16
Current Loan Commitment:    $3,000,000
Total Outstanding Amount:    $3,000,000
Interest Rate:    12.43%
Sector:    Agricultural Products
Collateral Coverage Ratio1:    1.42X
Primary Impact Objectives:    Capacity-Building, Increased Wages

 

1  The collateral coverage ratio is the amount of collateral the borrower must maintain in relation to the total amount outstanding on the facility.

According to the World Bank’s 2012 Report, Brazil has the seventh largest economy in the world, but economic productivity and prosperity vary widely throughout the country. Pernambuco State in northeast Brazil is one of the most marginalized regions, with a poverty rate that is double the national average. Almost 90% of Brazil’s sugarcane production occurs in its south-central region, but in 1958 a sugar producer commenced milling sugar in Pernambuco, and today it manages one of the most modern mills in the state.

In 2009, this sugar producer began receiving financing from the Brazilian representatives of the Company’s sub-advisor. Building on this relationship, and with an appreciation for the outsized social and economic impact of the borrower, the Company extended a loan to the borrower in 2013 to support crop cultivation and improve its milling operations.

The borrower’s activities generate stable employment for workers at wages that are higher than Pernambuco’s average local wage - which is, according to Instituto Brasileiro de Geografia e Estatística, among Brazil’s lowest. In addition to creating much-needed jobs, the borrower provides health, safety and specialization training to all employees. It also offers more than 250 rent-free houses and free on-site medical services to employees and their families. The borrower is equally committed to the broader community where it operates. It pays the rent and building maintenance costs for a local school and contributes to a nonprofit organization that offers health care to children, women and men in Pernambuco.

The borrower actively engages in minimizing its environmental impact. Sugarcane processing byproducts include ethanol, a clean-burning, renewable fuel, and bagasse, a fibrous waste. The borrower uses the bagasse to generate electricity, with the capacity to create 40,000 megawatts per year. In addition, the borrower collaborates with IBAMA (Brazilian Institute of Environment and Natural Resources) to reforest the region and has planted 19.83 hectares of trees to date.

 

D. Update to the Section Titled “Management of the Company”

 

1. The following sentence is inserted as the fourth sentence in the first paragraph of Cynthia Hostetler’s biography on page 98 of the Prospectus:

“Additionally, Ms. Hostetler has served on the Board of Directors of Vulcan Materials Company (NYSE: VMC), a producer of construction aggregates and other construction materials, since July 2014.”

 

2. The third sentence in the second paragraph of R. Michael Barth’s biography on page 99 of the Prospectus is deleted in its entirety and replaced with the following:

“Mr. Barth is currently Chairman of the Board of SFC Ltd., part of the AfricInvest Group, and is also a member of the Boards of Directors of FINCA Microfinance Holding and SNV (USA), Bamboo Finance (Luxembourg), and SNU (USA).”

 

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3. The table under “Our Advisor” heading on page 102 of the Prospectus is deleted in its entirety and replaced with the following:

 

Name

 

Age

  

Position

    
Gloria S. Nelund   52    Chairman, Chief Executive Officer and Chief Compliance Officer   
Mark Torline   57    President and Manager   
Brent VanNorman   53    Chief Operating Officer and Chief Financial Officer   
Paul Sanford   38    Chief Investment Officer   
Patrick Miller   50    Executive Vice President   
Michael Dean   43    Head of Credit   
Marni Hodder   41    Chief Impact Officer and Compliance Officer   
Jean-Marc Plantier   46    Director of Finance   

 

4. In connection with the recent appointment of Jean-Marc Plantier to serve as the Advisor’s and Sponsor’s Director of Finance, the following biographical information for Jean-Marc Plantier is added following the biographical information for Marni Hodder on page 103 of the Prospectus:

Jean-Marc Plantier, Director of Finance

Jean-Marc Plantier has served as Director of Finance of our Advisor and Sponsor since August 2014. From January 2011 until August 2011 and from June 2013 until August 2014, Mr. Plantier was employed by Resource Global Professionals as a consultant specializing in accounting, SEC and financial reporting and audit quality control and in such capacity served as Interim Controller for the Advisor and Sponsor from December 2013 until August 2014. From April 2009 until January 2011 and from August 2011 until June 2013, Mr. Plantier was self-employed and served as a consultant to small private and public companies, as well as public accounting firms. He has over 20 years of professional accounting experience, in both the public and private accounting industries. Previously, Mr. Plantier served as an Audit Partner for Cacciamatta Accountancy Corporation, where he was primarily responsible for the financial statement audits of the firm’s public and private clients. Additionally, his responsibilities also included: SEC reporting, accounting for complex debt and equity transactions, derivative accounting, accounting for business combinations, and compliance with PCAOB auditing standards. Mr. Plantier’s professional career also has included working for Hall & Company, CPAs, McGladrey & Pullen, LLP, and Moore Stephens Frazer and Torbet, LLP. He started his accounting career with Fidelity National Title Insurance Company, where he was promoted to Assistant Vice President in charge of Cash Management and Trust Accounting.

Mr. Plantier is a Certified Public Accountant. He holds a Bachelor of Arts in Business Administration (accounting concentration) from California State University, Fullerton.

 

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