UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 18, 2017
TriLinc Global Impact Fund, LLC
(Exact name of Registrant as Specified in Its Charter)
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Delaware |
000-55432 |
36-4732802 |
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(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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1230 Rosecrans Avenue, Suite 605 Manhattan Beach, CA |
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90266 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (310) 997-0580
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
Emerging growth company ☑
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Update to the Company’s Investments
Since TriLinc Global Impact Fund, LLC (the “Company”) commenced operations and through June 30, 2017, the Company has funded $614.5 million in aggregate investments, including $28 million in temporary investments. Of the aggregate investment amount, the Company has received $351 million in full aggregate transaction repayments from existing and exited trade finance, term loan, and temporary investment facilities. Of the aggregate transaction repayment amount, approximately $113.8 million represents transactions of trade finance, term loan, and temporary investment facilities that are closed and no longer part of the Company’s portfolio.
As of June 30, 2017 the Company had the following investments:
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Description |
Sector |
Country |
Investment Type |
Maturity1 |
Interest Rate2 |
Total Loan Commitment3 |
Total Amount Outstanding4 |
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Agriculture Distributor
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Farm-Product Raw Materials |
Argentina |
Trade Finance |
7/16/2017-7/18/2017 |
9.00% |
$15,000,000 |
$12,500,000 |
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Agricultural Products Exporter II |
Farm-Product Raw Materials |
Singapore |
Trade Finance |
2/28/2018 |
7.50% |
$5,000,000 |
$5,000,000 |
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Beef Exporter |
Meat Products |
Argentina |
Trade Finance |
11/29/2017 |
11.50% |
$9,000,000 |
$9,000,000 |
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Chia Seed Exporter |
Field Crops, Except Cash Grains |
Chile |
Trade Finance |
3/4/2018 |
10.90% |
$2,500,000 |
$1,418,655 |
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Citrus Producer |
Fruit and Tree Nuts |
Uruguay |
Trade Finance |
2/3/2018-6/14/2018 |
9.00% |
$2,500,000 |
$670,364 |
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Clean Diesel Distributor |
Bulk Fuel Stations and Terminals |
Peru |
Term Loan |
8/1/2019 |
11.50% |
$15,000,000 |
$15,000,000 |
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Consumer Goods Distributor |
Groceries and Related Products |
Namibia |
Trade Finance |
10/29/2017 |
12.00% |
$2,000,000 |
$500,000 |
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Dairy Co-Operative |
Dairy Products |
Argentina |
Trade Finance |
7/29/2017 |
10.67% |
$6,000,000 |
$6,000,000 |
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Diaper Manufacturer |
Converted Paper and Paperboard Products |
Peru |
Term Loan |
7/28/2021 |
12.16% |
$6,040,000 |
$5,140,000 |
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Electronics Assembler |
Miscellaneous Electrical Machinery, Equipment, and Supplies |
South Africa |
Trade Finance |
11/20/2017 |
13.00% |
$6,000,000 |
$340,991 |
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Farm Supplies Distributor5 |
Miscellaneous Non-Durable Goods |
Zambia |
Trade Finance |
10/07/2015-5/3/2016 |
12.42% |
$10,000,000 |
$5,078,526 |
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Fish Processor & Exporter |
Commercial Fishing |
Ecuador |
Trade Finance |
9/12/2017-8/18/2018 |
9.00% |
$2,000,000 |
$540,574 |
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FMCG Manufacturer |
Soap, Detergents, and Cleaning Preparations |
Zambia |
Term Loan |
11/16/2019 |
11.00% |
$6,500,000 |
$1,662,935 |
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Fruit & Nut Distributor |
Groceries and Related Products |
South Africa |
Trade Finance |
5/22/20156 |
10.00% |
$1,250,000 |
$785,806 |
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Grain Processor |
Cash Grains |
Uganda |
Trade Finance |
12/31/2017 |
11.30% |
$3,750,000 |
$297,433 |
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Hospitality Service Provider |
Hotels and Motels |
Cabo Verde |
Term Loan |
8/21/2021 |
13.50% |
$17,000,000 |
$17,000,000 |
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Infrastructure and Logistics Provider |
Highway and Street Construction, Except Elevated Highways |
Indonesia |
Term Loan |
11/22/2019 |
20.67%7 |
$15,000,000 |
$13,636,500 |
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Steel Works, Blast Furnaces, and Rolling and Finishing Mills |
Zambia |
Trade Finance |
8/7/2017 |
13.00% |
$6,000,000 |
$6,000,000 |
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International Development Logistics Provider |
Lumber and Other Construction Materials |
Italy |
Trade Finance |
12/31/2017 |
9.50% |
$5,000,000 |
$4,469,131 |
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IT Service Provider |
Computer Programming and Data Processing |
Brazil |
Term Loan |
10/31/2019 |
13.50% |
$15,000,000 |
$15,000,000
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Marine Logistics Provider |
Services Incidental to Water Transportation |
Nigeria |
Term Loan |
9/16/2020 |
14.99%8 |
$16,050,000 |
$13,753,870 |
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Meat Processor II |
Meat Products |
South Africa |
Trade Finance |
5/19/2017 |
14.50% |
$2,800,000 |
$214,091 |
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Metals Trader |
Metals and Minerals, Except Petroleum |
United Kingdom |
Trade Finance |
6/30/2017-12/31/2017 |
10.13% |
$8,000,000 |
$5,089,930 |
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Mine Remediation Company |
Metal Mining Services |
South Africa |
Trade Finance |
9/28/2017 |
17.50% |
$2,500,000 |
$1,234,145 |
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Oilseed Distributor |
Fats and Oils |
Argentina |
Trade Finance |
8/31/2017-2/22/2018 |
8.88% |
$12,000,000 |
$12,000,000 |
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Plastic Products Manufacturer |
Miscellaneous Plastics Products |
Kenya |
Trade Finance |
10/12/2017 |
11.50% |
$1,500,000 |
$161,018 |
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Power Producer |
Electric Services |
Ghana |
Trade Finance |
3/10/2017-10/9/2017 |
11.50% |
$20,000,000 |
$11,964,946 |
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Property Developer |
Land Subdividers and Developers |
Namibia |
Term Loan |
8/15/2021 |
12.50% |
$15,000,000 |
$15,000,000 |
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Railway Equipment Provider |
Rental of Railroad Cars |
South Africa |
Term Loan |
1/31/2020 |
12.00% |
$5,000,000 |
$4,136,861 |
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Scrap Metal Recycler |
Secondary Nonferrous Metals |
Morocco |
Trade Finance |
7/17/2017-7/17/2018 |
11.14%9 |
$9,000,000 |
$7,349,626 |
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Sesame Seed Exporter |
Farm-Product Raw Materials |
Guatemala |
Trade Finance |
3/31/201610 |
12.00% |
$2,000,000 |
$907,565 |
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Shrimp Exporter |
Fresh or Frozen Packaged Fish |
Ecuador |
Trade Finance |
10/22/2017-10/22/2018 |
9.25% |
$9,000,000 |
$6,912,400 |
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Sugar Producer |
Field Crops, Except Cash Grains |
Brazil |
Term Loan |
02/28/2021 |
12.43% |
$3,000,000 |
$2,851,296 |
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Tin Producer |
Primary Nonferrous Metals |
Indonesia |
Term Loan |
6/30/2020 |
12.00% |
$3,000,000 |
$2,372,297 |
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Tuna Processor and Exporter |
Lumber and Other Construction Materials |
Ecuador |
Trade Finance |
8/7/2017-6/8/2018 |
9.50% |
$5,000,000 |
$4,550,355 |
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Vanilla Exporter |
Groceries and Related Products |
Mauritius |
Trade Finance |
11/23/2017 |
11.10%11 |
$12,000,000 |
$4,576,825 |
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Vessel Operator |
Metal Mining Services |
Indonesia |
Trade Loan |
3/5/2018-6/8/2020 |
11.19% |
$5,332,336 |
$5,332,336 |
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Wholesale Distributor |
Chemicals and Allied Products |
Malaysia |
Trade Loan |
3/31/2020 |
12.00% |
$15,000,000 |
$15,000,000 |
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Investment Portfolio Total |
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$296,722,336 |
$233,448,476 |
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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. The Company has adjusted the disclosure in the above table to reconcile the maturity dates for its investments. Previously, the Company has presented targeted rather than maximum maturity dates for certain of its investments where such dates were different. Positions with multiple transactions may have different maximum maturity dates, which are reflected in the maturity date ranges.
2 Interest rates are as of June 30, 2017 and, where applicable, are weighted averages amongst multiple transactions. 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 June 30, 2017. 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 Repayment by the Farm Supplies Distributor is delayed due to slow payment of associated receivables by its main customer, the Government of Zambia. For more information on the Farm Supplies Distributor, please see our Quarterly Report on the Form 10-Q, for the quarter ended June 30, 2017 as filed with the SEC on August 11, 2017.
6 The Company, together with its sub-advisor, had agreed to further extend the principal maturity date to facilitate the strategic sale of the Fruit & Nut Distributor, which closed in June 2016. For more information on the Fruit and Nut Distributor, please see our Quarterly Report on the Form 10-Q, for the quarter ended June 30, 2017 as filed with the SEC on August 11, 2017
.7 The loan will provide for a net interest rate to the Company of 18.5%, 20%, and 22% in year 1, 2, and 3 respectively.
8 The interest rate is a weighted average interest rate between four separate transactions. One transaction has an interest rate of 10.50%, one transaction has a variable interest rate of one month Libor +10.5%, and the remaining two transactions, totaling $11.7 million, include an additional 4.68% rate in deferred fixed interest.
9 The interest rate is a variable rate of one month Libor +10.50%.
10 Repayment by the Sesame Seed Exporter is delayed due to customer turnover. For more information on the Sesame Seed Exporter, see our Quarterly Report on the Form 10-Q, for the quarter ended June 30, 2017 as filed with the SEC on August 11, 2017.
11 The interest rate is one month Libor +10.50%.
As of June 30, 2017 the Company had exited the following investments:
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Description |
Sector |
Country |
Investment Type |
Transaction Date |
Transaction Amount |
Payoff Date |
Internal Rate of Return (“IRR”)1 |
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Agricultural Products Exporter I2
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Farm-Product Raw Materials |
Singapore |
Trade Finance |
4/23/2015 |
$10,000,000 |
2/29/2016 |
11.85% |
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Agricultural Supplies Distributor I
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Miscellaneous Non-Durable Goods |
South Africa |
Trade Finance |
10/15/2014 |
$15,202,091 |
8/14/2015 |
13.11% |
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Agricultural Supplies Distributor II
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Miscellaneous Non-Durable Goods |
South Africa |
Trade Finance |
10/06/2015 |
$8,563,423 |
6/1/2016 |
10.76% |
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Candle Distributor |
Miscellaneous Manufacturing Industries |
South Africa |
Trade Finance |
9/2/2014 |
$1,400,000 |
9/16/2015 |
14.27% |
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Cement Distributor |
Cement, Hydraulic |
Kenya |
Trade Finance |
9/23/2014 |
$12,000,000 |
10/15/2015 |
15.29% |
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Construction Materials Distributor |
Hardware, Plumbing, and Heating Equipment |
South Africa |
Trade Finance |
10/9/2014 |
$838,118 |
4/1/2016 |
13.00% |
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Electronics Retailer |
Radio, Television, Consumer Electronics, and Music Stores |
Indonesia |
Term Loan |
7/26/2013 |
$5,000,000 |
6/17/2014 |
19.59% |
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Farm Supplies Wholesaler |
Miscellaneous Non-Durable Goods |
South Africa |
Trade Finance |
5/28/2015 |
$2,250,000 |
1/19/2016 |
13.14% |
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Fertilizer Distributor |
Agricultural Chemicals |
Zambia |
Trade Finance |
7/17/2014 |
$3,000,000 |
11/4/2014 |
12.65% |
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Food Processor |
Groceries and Related Products |
Peru |
Term Loan |
3/25/2014 |
$576,000 |
11/28/2014 |
14.01% |
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Frozen Seafood Exporter |
Groceries and Related Products |
Ecuador |
Trade Finance |
6/17/2013 |
$240,484 |
5/14/2014 |
13.49% |
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Industrial Materials Distributor |
Mineral and Ores |
South Africa |
Trade Finance |
11/20/2014 |
$4,030,000 |
12/15/2015 |
13.64% |
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Insulated Wire Manufacturer |
Rolling, Drawing, and Extruding of Nonferrous Metals |
Peru |
Trade Finance |
5/2/2014 |
$1,991,000 |
12/2/2014 |
8.43% |
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International Tuna Exporter |
Products |
Trade Finance |
7/17/2013 |
$1,000,000 |
10/9/2013 |
13.58% |
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Machinery, Equipment, and Supplies |
United Kingdom |
Trade Finance |
1/29/2017 |
$1,225,749 |
4/12/2017 |
13.46% |
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Meat Processor I |
Meat Products |
South Africa |
Trade Finance |
7/7/2014 |
$2,950,000 |
4/1/2016 |
14.08% |
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Meat Producer2 |
Meat Products |
South Africa |
Trade Finance |
11/27/2015 |
$1,500,000 |
2/3/2016 |
14.83% |
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Rice & Bean Importer |
Groceries and Related Products |
South Africa |
Trade Finance |
7/7/2014 |
$1,000,000 |
8/5/2015 |
12.97% |
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Rice Importer |
Farm-Product Raw Materials |
Kenya |
Trade Finance |
11/6/2015 |
$399,653 |
5/19/2016 |
11.50% |
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Rice Producer |
Cash Grains |
Tanzania |
Trade Finance |
1/22/2015 |
$3,900,000 |
4/1/2016 |
12.04% |
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Seafood Processing Company |
Miscellaneous Food Preparations and Kindred Products |
Ecuador |
Trade Finance |
6/19/2013 |
$496,841 |
7/1/2013 |
13.44% |
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Textile Distributor |
Apparel, Piece Goods, and Notions |
South Africa |
Trade Finance |
7/25/2014 |
$7,026,515 |
5/30/2016 |
15.81% |
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Timber Exporter |
Sawmills and Planing Mills |
Chile |
Trade Finance |
7/3/2013 |
$915,000 |
6/12/2014 |
10.25% |
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Waste Management Equipment Distributor |
Machinery, Equipment, and Supplies |
South Africa |
Trade Finance |
2/13/2015 |
$310,752 |
5/15/2015 |
20.19% |
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Investment Portfolio Total |
$85,815,626 |
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Temporary Investments3 |
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Description |
Sector |
Country |
Investment Type |
Transaction Date |
Transaction Amount |
Payoff Date |
Internal Rate of Return (“IRR”) |
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Agricultural Products Exporter II |
Farm-Product Raw Materials |
Singapore |
Bridge Loan |
3/21/2016 |
$5,000,000 |
9/14/2016 |
29.84% |
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Financial Services Provider I |
Miscellaneous Business Credit Institutions |
Mauritius |
Promissory Note |
9/23/2014 |
$3,000,000 |
11/17/2014 |
15.94% |
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Financial Services Provider II |
Miscellaneous Business Credit Institutions |
Mauritius |
Promissory Note |
3/22/2016 |
$15,000,000 |
9/14/2016 |
32.04% |
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Financial Services Provider III |
Miscellaneous Business Credit Institutions |
Mauritius |
Promissory Note |
8/17/2016 |
$5,000,000 |
11/30/2016 |
10.53% |
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Temporary Investments Total |
$28,000,000 |
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Investment Portfolio and Temporary Investments Total |
$113,815,626 |
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1 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).
2 Impact data was not tracked for this investment. The Company does not track impact data for trade finance transactions that meet standard underwriting guidelines, but generally have the maturity of less than one year and involve borrowers with whom, at the time of funding, the Company does not expect to maintain an ongoing lending relationship or otherwise provide an open loan facility.
3 Temporary investments are defined as short-term investments that are not trade finance or term loan transactions that generally expire within one year, are intended to generate a higher yield than would be realized on cash and may be unsecured positions. The temporary investments that are unsecured positions may present a higher level of risk.
Certain Investment Portfolio Characteristics (as of June 30, 2017)1
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Total Assets (est.) |
$315,200,000 |
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Current Loan Commitments |
$296,722,336 |
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Leverage |
$1,860,000 |
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Weighted Average Portfolio Loan Size |
$6,801,799 |
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Weighted Average Portfolio Duration2 |
1.46 years |
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Average Collateral Coverage Ratio |
>2.0x |
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USD Denominated |
100% |
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Senior Secured |
100% |
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Countries |
22 |
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Sectors |
29 |
Top Five Investments by Percentage3
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Company Description |
Country |
% of Total Assets |
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Hospitality Service Provider |
Cabo Verde |
5.4% |
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Clean Diesel Distributor |
Peru |
4.8% |
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Wholesale Distributor |
Malaysia |
4.8% |
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Property Developer |
Namibia |
4.8% |
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IT Service Provider |
Brazil |
4.8% |
1 All information provided in this section, with the exception of the Total Asset (est.) figure, does not include the Company’s temporary investment commitments.
2 Weighted average duration is the average period of time before the loans in the portfolio mature or come due weighted to properly account for the difference of investment sizes within the portfolio. Duration is calculated through the average turn of trade finance transactions and the contracted amortization of term loans.
3 This represents all countries/sectors where the Company currently has a loan commitment other than through a temporary investment. 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.
Update to the Company’s Impact Data
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Percentage of the Borrowers that: |
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Comply with local environmental, labor, health, safety and business laws, standards and regulations |
100% |
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Demonstrate their positive impact on the community through community service and/or community donations |
84% |
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Commit to working towards implementing international environmental and health and safety best practices |
100% |
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Implement environmentally sustainable practices including energy savings, waste reduction and/or water conservation |
89% |
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Top 5 Borrower Impact Objectives |
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1.Job Creation |
76% |
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2.Wage Increase |
21% |
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3.Agricultural Productivity |
18% |
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4.Capacity-Building |
16% |
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5.Access to New Markets |
11% |
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Top 5 Borrower Environmental and Social Practices |
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1.Fair Hiring and Recruiting 2.Maternity/Paternity Leave 3.Energy Savings |
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4.Waste Reduction |
|
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5.Fair Compensation |
|
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Number of employees of the borrower companies |
27,335 |
Overview of Certain Recent Investments
Grain Processor
Investment Overview
Investment Type: Senior Secured Trade Finance
Investment Date:6/27/2017
Structure: Revolving Facility
Loan Commitment Amount: $3,750,000
Interest Rate: Three Month Libor + 9.00%
Sector: Grain Sourcing and Processing
Collateral Coverage Ratio: ≥1.44x
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Impact Objective(s): |
Productivity & Competitiveness Improvement; Job Creation; Wage Increase; Capacity-Building; Agricultural Productivity; Access to Financial Services |
Borrower Background
The Company recently extended a $3,750,000 senior secured revolving trade finance facility to an agricultural trading borrower that is established in the Cayman Islands for structural purposes and operates in Uganda. With a 2016 GDP of $25.5 billion, a population of 41.5 million, and GDP growth averaging 5.5% annually from 2010 to 2015, Uganda ranks 12th across the Sub-Saharan African region on the World Bank’s Ease of Doing Business index. The country’s economy is primarily service- and agriculture-based, with the agriculture industry employing one third of the workforce. Maize is a major staple food crop in Uganda, and over 90% of it is produced by smallholder farmers.
Recognizing the importance of the agricultural sector, and maize in particular, in Ugandan economic development and food security, the Company has provided financing for the borrower to source, process, and store maize before selling to off-takers, such as the World Food Programme, across Uganda, Kenya, and Rwanda. Off-takers range from food processing companies to organizations that produce nutrient-enriched, therapeutic food to meet the nutritional demand of the region’s growing population.
The borrower maintains support centers in western and southern Uganda that offer farmers a location to sell their maize, as well as access to competitively priced agricultural inputs, knowledge, demonstrations, extension services, and loans for working capital. To date, these centers have provided over 45,000 farmers with agricultural finance. Through its various activities, the borrower encourages farmers to use quality inputs and methods to maximize their crop yields and facilitates their ability to sell their harvests through a reliable process at fair pricing, thereby improving farmers’ livelihoods and contributing to regional food security.
Wholesale Distributor
Investment Overview
Investment Type: Senior Secured Trade Finance
Investment Date:3/31/2017
Structure: Revolving Facility
Loan Commitment Amount: $15,000,000
Interest Rate: 12.00%
Sector: Chemicals and Allied Products
Collateral Coverage Ratio: ≥2.57x
Impact Objective(s): New Market Access; New Product Access; Job Creation
Founded in 2007, this trading and manufacturing borrower is involved principally in the procurement of polymers, chemicals, fast moving consumer goods (“FMCG”), and food and agricultural related products. Through its operations based in Malaysia, the borrower contributes to the global economy by selling innovative products to partners around the world. In 2016, the borrower exported over 1,450 metric tons of various goods. The borrower offers competitive wages and provides in-the-field training, including capacity-building by respective department leads and trips to sourcing factories to gain a better understanding of the products they are trading, to all employees. With the Company’s financing, the borrower is on track to pioneer a variety of new products, like coffee, edible oil, and FMCG, across various sectors to more than half a dozen countries in 2017, and to become an important distributor in the ASEAN region.
The Company’s trade finance facility is secured by receivables, a pledge of shares, and a corporate guarantee.
International Development Logistics Provider
Investment Overview
Investment Type: Senior Secured Trade Finance
Investment Date:4/13/2016
Structure: Revolving Facility
Loan Commitment Amount: $5,000,000
Interest Rate: 9.50% + Euribor (if positive)
Sector: Construction Material
Collateral Coverage Ratio: ≥1.44x
Impact Objective(s): Access to New Markets; Job Creation
Borrower Background
Founded in 1983, the borrower has more than 30 years of experience in providing technical assistance, procurement, and trading services for projects and programs administered by well-known international development organizations, including the United Nations, the European Commission, and World Food Programme, throughout Sub-Saharan Africa, Eastern Europe, South America, and the Caribbean. It is anticipated that the Company’s financing will be used for the export of unassembled, prefabricated portable housing and office modules for use by UN peacekeeping personnel throughout Sub-Saharan Africa.
The Company’s trade finance facility is secured by cash, inventory, and accounts receivables.
August Press Release
On August 18, 2017, TriLinc Global Impact Fund, LLC issued a press release to announce its investment activity for July 2017. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
ITEM 9.01 FINANCIAL STATEMENT AND EXHIBITS.
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Exhibits |
The following Exhibit is filed as part of this report.
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Exhibit 99.1 |
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Press release of TriLinc Global Impact Fund, LLC |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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TRILINC GLOBAL IMPACT FUND, LLC |
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August 18, 2017 |
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By: |
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/s/ Gloria S. Nelund |
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Name: |
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Gloria S. Nelund |
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Title: |
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Chief Executive Officer |
Exhibit 99.1
PRESS RELEASE OF TRILINC GLOBAL IMPACT FUND, LLC
Los Angeles, CA (August 18, 2017) - TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it recently approved $37.5 million in term loan and trade finance transactions, bringing total financing commitments as of July 31, 2017 to $356.4 million for business expansion and socioeconomic development through its holdings in Sub-Saharan Africa, Latin America, and Southeast Asia. The transaction details are summarized below.
TriLinc is an impact investing fund that provides growth-stage loans and trade finance to established small and medium enterprises (“SMEs”) in developing economies where access to affordable capital is significantly limited. Impact Investing is defined as investing with the specific objective of achieving a competitive financial return as well as creating positive, measurable impact in communities across the globe.
TriLinc recently approved $37.5 million in term loan and trade finance transactions that meet the Company’s requirements for underwriting, economic development, and societal advancement, as described below:
On July 3, 2017, the Company funded $1,649,138 as part of a new $15,000,000 senior secured 4.2-year term loan to a Colombian consumer lender that services public sector employees and retirees within small and medium size government agencies throughout the country. Priced at 11.50%, the transaction is set to mature on August 1, 2021, and is secured by the portfolio of payroll deduction loans and all cash flow stemming from these assigned notes. The borrower anticipates that TriLinc’s loan will assist the company in originating new payroll deduction loans, which will provide middle income consumers with timely and flexible financing for voluntary private consumption.
On July 3, 2017, the Company funded $1,080,000 as part of a new $3,500,000 revolving senior secured trade finance facility to a pharmaceuticals distributor located in the United Arab Emirates that exports pharmaceutical components to Algeria. With an interest rate of six month LIBOR + 13.00%, the transaction is set to mature on January 30, 2018 and is secured by a pledge of financed goods, personal and corporate guarantees, and a credit insurance policy. TriLinc’s financing will be used to finance the purchase of pharmaceutical components from various pre-approved suppliers in India and China to be sold to one of the largest producers of generic pharmaceuticals in Algeria. All of the pharmaceutical components are produced in compliance with World Health Organization Good Manufacturing Practices, a requirement of the Algerian Ministry of Health. The borrower anticipates that TriLinc financing will help increase the availability of generic pharmaceutical options within Algeria.
On July 5, 2017, TriLinc funded $150,865 to an Earth Island Institute Dolphin-Safe-certified Ecuadorian fish processing and exporting company as part of an existing $2,000,000 revolving senior secured trade finance facility at a fixed interest rate of 9.00%. With a maturity date of August 18, 2018, these transactions are secured by specific receivables and inventory destined for export. The borrower anticipates that TriLinc financing will continue to support employment generation and increases in employee wages, in addition to the company’s commitment to waste management and water recycling initiatives on its premises.
Between July 5 and July 12, 2017, TriLinc funded two separate transactions, totaling $611,500, as part of an existing $5,000,000 revolving trade finance facility with a Dolphin-Safe certified Ecuadorian tuna processor and exporter. Priced at 9.50%, the transactions are set to mature on June 8, 2018 and are secured by inventory and accounts receivable. TriLinc’s financing will support the borrower’s job creation efforts, as the borrower anticipates that it will increase its processing capacity by 30% in the next three years, requiring another work shift and a substantial increase in its workforce. The borrower is dedicated to the wellbeing of its employees, as shown by offering them extensive training programs upon hiring, and performing human resource studies to measure the happiness and efficiency of its employees.
Between July 5 and July 28, 2017, TriLinc funded seven separate transactions, totaling $4,672,000 as part of an existing $9,000,000 revolving trade finance facility with an Ecuadorian shrimp exporter, whose local suppliers of farm-raised shrimp are all licensed by INP, an Ecuadorian institute specializing in biological, technological, and economic research aimed at the management and development of sustainable fisheries. With a fixed interest rate of 9.25%, the transactions are set to mature between September 4, 2018 and October 22, 2018. The financings are secured by inventory, accounts receivable, and purchase contracts. The borrower uses state-of-the-art, cost-efficient
cooling and freezing equipment to preserve the quality of its product and reduce its environmental footprint. TriLinc’s financing will support the borrower’s position as Ecuador’s seventh-largest shrimp exporter, and strengthen the borrower’s ability to offer competitive wages, health services, and childcare support to its employees.
On July 10, 2017, the Company funded $4,813,627 as part of a new $14,000,000 trade finance facility to a non-ferrous metals trader based in Hong Kong that imports London Metal Exchange grade copper and nickel into Chinese and Indian markets. Priced at 9.50%, the transaction is set to mature on January 4, 2018 and is secured by an assignment of sales contracts and underlying accounts receivables, including personal guarantees and power of attorney over the borrowers’ account. TriLinc’s financing will be used to finance the sale of copper and nickel products to various SMEs throughout India. The borrower and its suppliers aim to increase the accessibility of metal products for SMEs by facilitating the purchase of small quantities on a just-in-time basis and at an affordable contract cost. Increasing the copper and nickel supply within India aids in enhancing the economic viability of the country through meeting the growing infrastructure demands of its population.
On July 12, 2017, the Company funded $758,712 as part of an existing $8,000,000 senior secured revolving receivables trade finance facility to a global metals trader based in the United Kingdom and operating in Africa. With an interest rate of six month Libor + 6.00%, the transaction is set to mature on January 8, 2018, and is secured by a bill of exchange and sales contracts. TriLinc’s financing will facilitate the trade of London Metal Exchange registered, full plate nickel cathodes, which are used extensively as inputs in infrastructure development projects worldwide.
On July 26, 2017, TriLinc funded $99,590, as part of an existing $2,500,000 revolving trade finance facility with a family-owned Uruguayan citrus producer that specializes in growing, processing, packing, and exporting citrus fruits, juice concentrate, and essential oils. The borrower is certified under the guidelines of Tesco Nurture and Unilever’s sustainable agriculture code, demonstrating its commitment to operating in an environmentally responsible manner. With a fixed rate of 9.00%, the transaction is set to mature on July 26, 2018 and is secured by inventory. The borrower anticipates that TriLinc’s financing will support its efforts in increasing agricultural production to meet the demand stemming from new international markets, thereby facilitating export diversification in Uruguay.
On July 28, 2017, TriLinc funded a $15,000,000, 5.75-year term loan facility with a Kenyan freight and cargo transporter that services the port of Mombasa, the largest hub for trade in East Africa. With an interest rate of 12.80%, the transaction is set to mature on March 31, 2023 and is secured by a second lien over all assets and property owned by the borrower, including personal and corporate guarantees. TriLinc’s financing will support the borrower in increasing the operational effectiveness of the port, which has a direct influence on the competitiveness of Kenya’s businesses, the availability of a variety of goods in the country, and the wider cost of goods in Eastern Africa. The borrower maintains its competitive advantage by being strategically located and serving as a one-stop shop for its customers through offering services such as remote online tracking, weighing of cargo, customs clearance, transportation arrangements, etc. in order to increase the port’s operational efficiency.
On July 31, 2017, TriLinc funded two transactions, totaling $8,697,115, as part of a new $11,000,000 revolving senior secured trade finance facility with a mobile phone distributor, based in Hong Kong, which specializes in the trading and distribution of branded and OEM mobile phones, cameras, music players and home appliances. Priced at 10.00%, the transactions are set to mature between October 29, 2017 and December 28, 2017 and are secured by receivables, personal and corporate guarantees, a collection account, and properties in Hong Kong. The borrower was appointed to be the exclusive distributor in India for a large multinational networking and telecommunications equipment company. India has the fastest-growing smartphone market in the world, and TriLinc’s financing will support the distribution of mobile phones throughout the country that are both high quality and affordable. In addition to expanding access to technology within India, the borrower maintains an active CSR program in-country that is focused on bringing technological education to the youth in West Bengal.
“TriLinc’s recent investment activity demonstrates our commitment to diversifying our portfolio across impactful industries around the world,” said Gloria Nelund, CEO of TriLinc. “By financing companies that range from a pharmaceuticals distributor exporting economical pharmaceutical components into Algeria, to a freight and cargo transporter increasing port efficiency in Kenya, TriLinc is supporting SMEs that drive access to new products and services in order to generate economic and social progress.”
About TriLinc Global Impact Fund
TriLinc is a non-traded, externally managed, limited liability company that makes impact investments in SMEs in developing economies that provide the opportunity to achieve both competitive financial returns and positive measurable impact. TriLinc invests in SMEs through experienced local market sub-advisors, and expects to create a diversified portfolio of financial assets consisting primarily of collateralized private debt instruments. In addition, the Company aggregates and analyzes social, economic, and environmental impact data to track progress and measure success against stated objectives.