424B3 1 d150885d424b3.htm 424B3 424B3

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

TRILINC GLOBAL IMPACT FUND, LLC

SUPPLEMENT NO. 14 DATED MARCH 1, 2016

TO THE PROSPECTUS DATED APRIL 27, 2015

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 27, 2015, as supplemented by Prospectus Supplement No. 1, dated May 12, 2015, Prospectus Supplement No. 2, dated May 15, 2015, Prospectus Supplement No. 3, dated June 5, 2015, Prospectus Supplement No. 4, dated July 10, 2015, Prospectus Supplement No. 5, dated July 30, 2015, Prospectus Supplement No. 6, dated August 12, 2015, Prospectus Supplement No. 7, dated September 9, 2015, Prospectus Supplement No. 8, dated October 14, 2015, Prospectus Supplement No. 9, dated November 17, 2015, Prospectus Supplement No. 10, dated November 23, 2015, Prospectus Supplement No. 11, dated December 9, 2015, Prospectus Supplement No. 12, dated January 22, 2016, and Prospectus Supplement No. 13, dated February 9, 2016 (the “Prospectus”). Unless otherwise defined herein, capitalized terms used in this Supplement shall have the same meanings as in 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; and

 

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

 

A. Status of Our Public Offering

As of February 29, 2016, we had raised gross proceeds of approximately $177.4 million from the sale of approximately 18.3 million units of our limited liability company interest, including units issued pursuant to our distribution reinvestment plan.

As previously disclosed, our board of managers elected to extend our current offering. The offering is extended to December 31, 2016, with the ability to extend for such later period as permitted under the rules and regulations of the SEC. We reserve the right to terminate this offering at any time.

 

B. Declaration of Distributions

On February 19, 2016, with the authorization of our board of managers, the Company declared distributions for all classes of units for the period from February 1 through February 29, 2016. These distributions were calculated based on unitholders of record for each day in an amount equal to $0.00197268 per unit per day (less the distribution fee with respect to Class C units). On March 1, 2016, $582,483 of these distributions were paid in cash and on February 29, 2016, $427,352 were reinvested in the Company’s units for those investors participating in the Company’s unit Distribution 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 February 29, 2016:

Investments

Since the Company commenced operations and through February 29, 2016, the Company has funded $237.3 million in in aggregate investments, including $28.0 million in short-term investments. Of the aggregate investment amount, the Company has received $137.2 million in full aggregate transaction repayments from


existing and exited trade finance and term loan facilities. Of the aggregate transaction repayment amount, approximately $56.9 million represents transactions of trade finance and term loan facilities that are closed and no longer part of the Company’s portfolio.


As of February 29, 2016 the Company had the following investments:

 

Investment Portfolio
Description   Sector   Country   Investment
Type
  Maturity1     Interest
Rate2
    Total Loan
Commitment3
    Total Amount
Outstanding4
    Primary
Impact
Objective

Agriculture Distributor

  Farm-Product Raw
Materials
  Argentina   Trade
Finance
    9/30/2016        9.00   $ 15,000,000      $ 15,000,000      Job Creation

Agricultural Supplies Distributor II5

  Miscellaneous
Non-Durable
Goods
  South
Africa
  Trade
Finance
    5/22/2016        10.38   $ 10,000,000      $ 1,711,418      Job Creation

Beef Exporter

  Meat Products   Argentina   Trade
Finance
    4/30/2016        11.98   $ 9,000,000      $ 9,000,000      Job Creation

Chia Seed Exporter

  Field Crops, Except
Cash Grains
  Chile   Trade
Finance
    12/11/2016        11.50   $ 2,000,000      $ 1,900,000      Agricultural
Productivity

Construction Materials Distributor

  Hardware,
Plumbing, and
Heating Equipment
  South
Africa
  Trade
Finance
    7/1/2015 6      12.75   $ 750,000      $ 176,982      Job Creation

Consumer Goods Distributor

  Groceries and
Related Products
  Namibia   Trade
Finance
    3/3/2016        12.00   $ 2,000,000      $ 1,000,000      Job Creation

Dairy Co-Operative

  Dairy Products   Argentina   Trade
Finance
    3/31/2016        10.90   $ 6,000,000      $ 6,000,000      Job Creation

Diaper Manufacturer7

  Converted Paper
and Paperboard
Products
  Peru   Term
Loan
    6/15/2017        14.72   $ 3,250,000      $ 3,250,000      Job Creation

Electronics Assembler

  Communications
Equipment
  South
Africa
  Trade
Finance
    4/15/2016        13.00   $ 11,000,000      $ 4,704,545      Job Creation

Farm Supplies Distributor8

  Miscellaneous
Non-Durable
Goods
  Zambia   Trade
Finance
    5/3/2016        12.43   $ 10,000,000      $ 5,078,526      Job Creation

Fish Processor & Exporter

  Commercial
Fishing
  Ecuador   Trade
Finance
    6/19/2016        9.00   $ 2,000,000      $ 1,806,630      Job Creation

Fruit & Nut Distributor

  Groceries and
Related Products
  South
Africa
  Trade
Finance
    5/22/2015 9      17.50   $ 1,250,000      $ 667,838      Job Creation

Integrated Steel Producer

  Steel Works, Blast
Furnaces, and
Rolling and
Finishing Mills
  Zambia   Trade
Finance
    2/14/2016        13.00   $ 6,000,000      $ 6,000,000      Job Creation

IT Service Provider

  Computer
Programming and
Data Processing
  Brazil   Term
Loan
    10/31/2019        13.50   $ 14,000,000      $ 5,353,082      Job Creation

Marine Logistics Provider

  Services Incidental
to Water
Transportation
  Nigeria   Term
Loan
    9/16/2020        15.59 %10    $ 16,050,000      $ 12,956,833      Capacity-
Building

Meat Processor

  Meat Products   South
Africa
  Trade
Finance
    12/15/2015        14.50   $ 2,800,000      $ 600,000      Job Creation

Mine Remediation Company

  Metal Mining
Services
  South
Africa
  Trade
Finance
    8/15/2016        17.50   $ 2,500,000      $ 2,500,000      Job Creation

Oilseed Distributor

  Fats and Oils   Argentina   Trade
Finance
    3/1/2016        8.89   $ 5,100,000      $ 5,100,000      Job Creation

Rice Importer11

  Farm-Product Raw
Materials
  Kenya   Trade
Finance
    5/15/2016        11.62   $ 1,000,000      $ 24,470      Food
Security

Rice Producer

  Cash Grains   Tanzania   Trade
Finance
    10/26/2015 12      11.50   $ 3,900,000      $ 3,900,000      Job Creation

Sesame Seed Exporter

  Farm-Product Raw
Materials
  Guatemala   Trade
Finance
    3/31/2016        12.00   $ 2,000,000      $ 1,000,000      Agricultural
Productivity

Sugar Producer

  Field Crops, Except
Cash Grains
  Brazil   Term
Loan
    5/15/2017        17.43 %13    $ 3,000,000      $ 3,000,000      Capacity-
Building

Textile Distributor

  Apparel, Piece
Goods, and Notions
  South
Africa
  Trade
Finance
    5/28/2016        15.00   $ 2,500,000      $ 549,560      Job Creation

Investment Portfolio Total

      $ 131,100,000      $ 91,279,884     

Short-Term Investments14

      $ 0      $ 0     

Investment Portfolio and Short-Term Investment Totals

      $ 131,100,000      $ 91,279,884     


1 The Company’s trade finance borrowers may be granted flexibility with respect to repayment relative to the stated maturity date to accommodate specific contracts and/or business cycle characteristics. This flexibility in each case is agreed upon between the Company and the sub-advisor and between the sub-advisor and the borrower.
2 Interest rates are as of February 29, 2016. Interest rates include contractual rates and accrued fees where applicable.
3 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. Loan commitments are subject to availability of funds and do not represent a contractual obligation to provide funds to a borrower.
4 The total amount outstanding represents the actual amount borrowed under the loan as of February 29, 2016. 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.
5  Between February 1 and February 23, 2016, the Company funded four separate transactions totaling $1,711,419 to the Agricultural Supplies Distributor as part of an existing $10,000,000 trade finance facility at an interest rate of 10.38%. Secured by specific product inventory, all transactions are set to mature between April 24 and May 22, 2016. The borrower anticipates that the Company’s financing will support employment generation. Since the publication of Supplement No. 13, dated February 9, 2016, the Company has changed the borrower’s unique identifier name from “Agricultural Supplies Distributor” to “Agricultural Supplies Distributor II.”
6 The Company, together with its Sub-Advisor, and the Construction Materials Distributor have mutually agreed to extend the principal maturity date as the borrower continues to make interest payments as agreed.
7 On February 29, 2016, the Company funded $190,000 as part of an existing $500,000 senior secured purchase order revolving credit facility to the Diaper Manufacturer. With a maturity date of June 28, 2016, the purchase order facility is secured by specific purchase orders from customers of the borrower, as well as pledges of additional unencumbered assets and all shares of the borrower. The interest rate includes 2.50% of deferred interest.
8 On February 19, 2016, the Company funded $980,000 as part of an existing $10,000,000 trade finance facility at an interest rate of 12.50% to the Farm Supplies Distributor. The transaction, set to mature on May 3, 2016, is secured by specific inventory. The borrower anticipates that the Company’s financing will support job creation and indirectly help local farmers improve agricultural productivity and food security.
9  The Company, together with its Sub-Advisor, have agreed to extend the principal maturity date to facilitate the strategic sale of the Fruit & Nut Distributor on or before March 31, 2016.
10  The interest rate is a variable rate of one month Libor +10.5% plus 4.68% in deferred fixed interest.
11 On February 16, 2016, the Company funded $24,470 to the Rice Importer as part of an existing $1,000,000 revolving senior secured trade finance facility. With an interest rate of three month Libor + 11.00% and maturity date of May 15, 2016, this transaction is secured by receivables as well as inventory.
12 The Company, together with its Sub-Advisor, and the Rice Producer have mutually agreed to extend the principal maturity date as the borrower continues to make interest payments as agreed.
13  The interest rate includes 5.00% of penalty interest because the borrower has missed making required interest payments. On August 27, 2015, the Company was informed that the borrower had filed for judicial recuperation with the local court in Brazil. The filing allows the borrower time to present a comprehensive plan of restructure to the Company. An initial plan was presented and published on January 19, 2016 and has been reviewed with the Company. Further steps, discussions and negotiations are ongoing in line with this plan and the judicial process.
14 Short-Term Investments are defined as investments that generally meet the standard underwriting guidelines for trade finance and term loan transactions and that also have the following characteristics: (1) maturity of less than one year, (2) loans to borrowers to whom, at the time of funding, the Company does not expect to re-lend. Impact data is not tracked for Short-term Investments.


As of February 29, 2016 the Company had exited the following investments:

 

Investment Portfolio
Description   Sector   Country   Investment
Type
  Transaction
Date
    Transaction
Amount
   

Payoff

Date

    Internal
Rate of
Return
(“IRR”)1
    Primary
Impact
Objective

Agricultural Supplies Distributor I1

  Miscellaneous
Non-Durable
Goods
  South
Africa
  Trade
Finance
    10/15/2014      $ 8,196,189        8/14/2015        13.02   Job Creation

Candle Distributor

  Miscellaneous
Manufacturing
Industries
  South
Africa
  Trade
Finance
    9/1/2014      $ 1,400,000        9/16/2015        14.27   Job Creation

Cement Distributor

  Cement,
Hydraulic
  Kenya   Trade
Finance
    9/23/2014      $ 12,000,000        10/15/2015        15.29   Job Creation

Electronics Retailer

  Radio, Television,
Consumer
Electronics, and
Music Stores
  Indonesia   Term
Loan
    7/26/2013      $ 5,000,000        6/17/2014        19.59   Access to
Finance

Farm Supplies Wholesaler

  Miscellaneous
Non-Durable
Goods
  South
Africa
  Trade
Finance
    5/25/2015      $ 2,250,000        1/19/2016        13.14   Agricultural
Productivity

Fertilizer Distributor

  Agricultural
Chemicals
  Zambia   Trade
Finance
    7/17/2014      $ 3,000,000        11/4/2014        12.65   Job Creation

Food Processor

  Groceries and
Related Products
  Peru   Term
Loan
    3/25/2014      $ 576,000        11/28/2014        14.01   Job Creation

Frozen Seafood Exporter

  Groceries and
Related Products
  Ecuador   Trade
Finance
    6/17/2013      $ 240,484        5/14/2014        13.49   Job Creation

Industrial Materials Distributor

  Mineral and Ores   South
Africa
  Trade
Finance
    11/20/2014      $ 4,030,000        12/15/2015        13.64   Job Creation

Insulated Wire Manufacturer

  Rolling, Drawing,
and Extruding of
Nonferrous
Metals
  Peru   Trade
Finance
    5/2/2014      $ 1,991,000        12/2/2014        8.43   Job Creation

International Tuna Exporter

  Groceries and
Related Products
  Ecuador   Trade
Finance
    7/17/2013      $ 1,000,000        10/9/2013        13.58   Job Creation

Rice & Bean Importer

  Groceries and
Related Products
  South
Africa
  Trade
Finance
    7/7/2014      $ 1,000,000        8/5/2015        12.97   Job Creation

Seafood Processing Company

  Miscellaneous
Food Preparations
and Kindred
Products
  Ecuador   Trade
Finance
    6/19/2013      $ 496,841        7/1/2013        13.44   Job Creation

Timber Exporter

  Sawmills and
Planing Mills
  Chile   Trade
Finance
    7/3/2013      $ 915,000        6/12/2014        10.25   Job Creation

Waste Management Equipment Distributor

  Machinery,
Equipment, and
Supplies
  South
Africa
  Trade
Finance
    2/13/2015      $ 310,752        5/15/2015        20.19   Equality &
Empowerment

Investment Portfolio Totals

      $ 42,406,266         

Investment Portfolio—Weighted Average IRR

  

        14.33%     

Short-Term Investments2

         

Agricultural Products Exporter

  Farm-Product
Raw Materials
  Singapore   Short-
Term
    4/23/2015      $ 10,000,000        2/29/2014        11.85   N/A

Financial Services Provider

  Miscellaneous
Business Credit
Institutions
  Mauritius   Short-
Term
    9/23/2014      $ 3,000,000        11/17/2014        15.94   N/A

Meat Producer

  Meat Products   South
Africa
  Short-
Term
    11/27/2015      $ 1,500,000        2/3/2016        14.83   N/A

Short-Term Investments Total

    $ 14,500,000         

Short-Term Investments—Weighted Average IRR

  

        13.00%     

Investment Portfolio and Short-Term Investments Totals

  

  $ 56,906,266         

Investment Portfolio and Short-Term Investments—Weighted Average IRR

  

      13.99  

 

1  Since the publication of Supplement No. 13, dated February 9, 2016, the Company has changed the borrower’s unique identifier name from “Agricultural Supplies Producer” to “Agricultural Supplies Distributor I” and changed the borrower’s sector from “Agricultural Chemicals” to “Miscellaneous Non-Durable Goods.”


2 Given that the loan has been paid off, this investment is no longer part of the Company’s portfolio. The internal rate of return is defined as the gross average annual return earned through the life of an investment. The internal rate of return was calculated by our Advisor (unaudited) as the investment (loan advance) was made and cash was received (principal, interest and fees).

Certain Portfolio Characteristics1

 

Total Assets (est.)

   $ 158,400,000   

Current Loan Commitments

   $ 131,100,000   

Leverage

     0

Weighted Average Portfolio Loan Size

   $ 4,361,854   

Weighted Average Portfolio Duration

     0.68 years   

Weighted Average Position Yield

     12.36

Average Collateral Coverage Ratio

     1.52x   

USD Denominated

     100

Senior Secured First-Lien

     100

Countries2

     12   

Sectors2

     17   

Top Five Investments by Percentage

 

Company Description    Country        % of Total Assets  

Agriculture Distributor

   Argentina      9.5

Marine Logistics Provider

   Nigeria      8.2

Beef Exporter

   Argentina      5.7

Dairy Co-Operative

   Argentina      3.8

Integrated Steel Producer

   Zambia      3.8

 

 

LOGO


1  All information provided in this section, with the exception of the Total Asset (est.) figure, pertains exclusively to the Company’s Investment Portfolio and therefore does not include the Company’s Short-Term Investments.
2  This represents all countries/sectors where the Company currently has a loan commitment. 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 country/sector allocation charts, which represents invested capital.
3  The above charts represent investment type, developing economy, and sector diversification as a percentage of the total amount outstanding of the Company’s Investment Portfolio.