Filed Pursuant to Rule 424(b)(3)
Registration No. 333-185676
TRILINC GLOBAL IMPACT FUND, LLC
SUPPLEMENT NO. 17 DATED MARCH 6, 2015
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. 11, dated November 17, 2014, Prospectus Supplement No. 12, dated December 5, 2014, Prospectus Supplement No. 13, dated December 10, 2014, Prospectus Supplement No. 14, dated January 7, 2015, Prospectus Supplement No. 15, dated February 5, 2015, and Prospectus Supplement No. 16, dated February 20, 2015 (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; |
| C. | To provide information regarding the extension of our Advisory Agreement; and |
| D. | To update the section of the Prospectus titled “Business.” |
| A. | Status of Our Public Offering |
As of March 5, 2015, we had raised gross proceeds of approximately $76.1 million from the sale of approximately 8.0 million units of our limited liability company interest, including units issued pursuant to our distribution reinvestment plan.
| B. | Declaration of Distributions |
On February 17, 2015, 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 28, 2015. These distributions were 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 March 2, 2015, $289,084 of these distributions were paid in cash and on February 28, 2015, $138,924 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. | Extension of our Advisory Agreement |
Our Amended and Restated Advisory Agreement between us and the Advisor, dated as of February 25, 2014, has a one-year term and is subject to an unlimited number of renewals upon mutual consent of the Company and the Advisor. Our board of managers has determined to extend our Amended and Restated Advisory Agreement, effective February 25, 2015, through March 24, 2015, the date of the next meeting of the board of managers at which the board is to conduct its annual review of the Advisor’s performance and compensation.
| D. | 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 28, 2015: |
Investments
Since the Company commenced operations and through February 28, 2015, the Company has funded in excess of $93.7 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.
| Description | Sector | Country | Investment Type | Maturity1 | Interest Rate2 | Total Loan Commitment3 | Total Amount Outstanding4 | Primary Impact Objective | ||||||||||||||
Agricultural Supplies Producer | Agricultural Chemicals | South Africa | Trade Finance | 3/12/2015 | 13.00 | % | $ | 10,000,000 | $ | 4,551,951 | Job Creation | |||||||||||
Agriculture Distributor | Farm-Product Raw Materials | Argentina | Trade Finance | 7/28/2015 | 9.00 | % | $ | 7,000,000 | $ | 6,000,000 | Job Creation | |||||||||||
Beef Exporter | Meat Products | Argentina | Trade Finance | 6/4/2015 | 11.98 | % | $ | 7,000,000 | $ | 6,000,000 | Job Creation | |||||||||||
Candle Distributor | Miscellaneous Manufacturing Industries | South Africa | Trade Finance | 5/26/2015 | 13.00 | % | $ | 1,400,000 | $ | 1,375,422 | Job Creation | |||||||||||
Cement Distributor | Cement, Hydraulic | Kenya | Trade Finance | 3/17/2015 | 14.75 | % | $ | 5,000,000 | $ | 5,000,000 | Job Creation | |||||||||||
Construction Materials Distributor | Hardware, Plumbing, and Heating Equipment | South Africa | Trade Finance | 5/29/2015 | 12.75 | % | $ | 750,000 | $ | 311,935 | Job Creation | |||||||||||
Consumer Goods Distributor | Groceries and Related Products | Namibia | Trade Finance | 5/14/2015 | 12.00 | % | $ | 2,000,000 | $ | 2,000,000 | Job Creation | |||||||||||
Dairy Co-Operative5 | Dairy Products | Argentina | Trade Finance | 2/25/2016 | 10.90 | % | $ | 6,000,000 | $ | 6,000,000 | Job Creation | |||||||||||
Diaper Mfg.6 | Converted Paper and Paperboard Products | Peru | Term Loan | 6/15/2017 | 15.60 | % | $ | 2,750,000 | $ | 2,750,000 | Job Creation | |||||||||||
Farm Supplies Distributor7 | Miscellaneous Non-Durable Goods | Zambia | Trade Finance | 10/25/2015 | 12.08 | % | $ | 15,000,000 | $ | 11,215,349 | Job Creation | |||||||||||
Fruit & Nut Distributor | Groceries and Related Products | South Africa | Trade Finance | 5/22/2015 | 17.50 | % | $ | 1,250,000 | $ | 1,154,848 | Job Creation | |||||||||||
Meat Processor8 | Meat Products | South Africa | Trade Finance | 12/22/2015 | 14.50 | % | $ | 2,800,000 | $ | 1,244,975 | Job Creation | |||||||||||
Mine Remediation Co.9 | Metal Mining Services | South Africa | Trade Finance | 2/2/2016 | 17.50 | % | $ | 3,250,000 | $ | 2,627,584 | Job Creation | |||||||||||
Rice & Bean Importer | Groceries and Related Products | South Africa | Trade Finance | 4/28/2015 | 12.50 | % | $ | 1,000,000 | $ | 1,000,000 | Job Creation | |||||||||||
Soybean Distributor | Fats and Oils | Argentina | Trade Finance | 8/30/2015 | 9.02 | % | $ | 3,500,000 | $ | 0,000 | Job Creation | |||||||||||
Sugar Producer | Field Crops, Except Cash Grains | Brazil | Term Loan | 4/30/2017 | 12.43 | % | $ | 3,000,000 | $ | 3,000,000 | Capacity- Building | |||||||||||
Textile Distributor10 | Apparel, Piece Goods, and Notions | South Africa | Trade Finance | 5/28/2015 | 15.00 | % | $ | 2,500,000 | $ | 1,396,426 | Job Creation | |||||||||||
Waste Management Equipment Distributor | Machinery, Equipment, and Supplies | South Africa | Trade Finance | 4/17/2015 | 19.50 | % | $ | 500,000 | $ | 210,752 | Equality & Empowerment | |||||||||||
Portfolio Totals | $ | 74,700,000 | $ | 55,839,242 | ||||||||||||||||||
| 1 | Given the nature of trade finance contracts, trade finance borrowers typically have a 30 day grace period relative to the maturity date. |
| 2 | Interest rates are as of February 28, 2015. 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 28, 2015. 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 | On February 6 and February 25, 2015, the Company funded $2,000,000 and $3,500,000, respectively, as part of an existing $6,000,000 revolving trade finance facility at a fixed interest rate of 10.90% to the Dairy Co-Operative. The transactions are set to mature on November 3, 2015 and February 25, 2016, respectively, and are supported by purchase contracts with large international conglomerates. The borrower anticipates that the Company’s financing will support economic growth through job creation, increased exports and increased agricultural productivity. |
| 6 | The interest rate includes 2.50% of deferred interest. |
| 7 | On February 24, 2015, the Company funded $7,280,000 as part of an existing $15,000,000 trade finance facility at a blended interest rate of 12.08% to the Farm Supplies Distributor. The transaction, set to mature on October 25, 2015, is secured by specific inventory. |
| 8 | On February 20, 2015, the Company funded $1,000,000 as part of an existing $2,800,000 purchase and repurchase trade finance transaction at a fixed interest rate of 14.50% to the Meat Processor. The transaction, set to mature on December 22, 2015, is supported by inventory. |
| 9 | On February 6, 2015, TriLinc funded a further $250,000 as part of an existing $3,250,000 purchase and repurchase trade finance facility at a fixed interest rate of 17.50% to the Mine Remediation Company. The transaction, set to mature on February 2, 2016, is supported by inventory and receivables. |
| 10 | On February 4 and February 10, 2015, the Company funded $375,447 and $880,923, respectively, as part of an existing $2,500,000 revolving trade finance facility at a fixed interest rate of 15.00% to the Textile Distributor. Both transactions, set to mature on May 28, 2015, are secured by specific inventory being imported into South Africa from Asia. |
As of February 28, 2015 the Company had exited the following investments:
| Description | Sector | Country | Investment Type | Transaction Date | Transaction Amount | Payoff Date | Internal Rate of Return (“IRR”)1 | Primary Impact Objective | ||||||||||||
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 | ||||||||||
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 | ||||||||||
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 | ||||||||||
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 | ||||||||||
Portfolio Totals | $ | 13,219,325 | ||||||||||||||||||
| 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). |
Certain Portfolio Characteristics
Total Assets (est.) | $ | 68,813,055 | ||
Current Loan Commitments | $ | 74,700,000 | ||
Leverage | 0 | % | ||
Weighted Average Portfolio Loan Size | $ | 4,120,704 | ||
Weighted Average Portfolio Duration | 0.51 years | |||
Weighted Average Position Yield | 12.5 | % | ||
USD Denominated | 100 | % | ||
Countries | 7 |
On February 13, 2015, the Company funded $210,752 as part of a $500,000 purchase and repurchase trade finance facility at a fixed interest rate of 19.5% to a South African waste management equipment distributor. The transaction, set to mature on April 17, 2015, is supported by specific equipment. The borrower anticipates that TriLinc financing will support its objective of providing environmental management solutions while also promoting the participation of women and minorities in the workplace.
Top Five Investments by Percentage
| Company Description | Country | % of Total Assets | ||||
Farm Supplies Distributor | Zambia | 16.3 | % | |||
Agriculture Distributor | Argentina | 8.7 | % | |||
Beef Exporter | Argentina | 8.7 | % | |||
Dairy Co-Operative | Argentina | 8.7 | % | |||
Cement Distributor | Kenya | 7.3 | % | |||
Investment Type | Developing Economies | Sector Diversification | ||
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| 2. | The following disclosure supplements the “Business—Investments—Overview—Impact Overview” section of the Prospectus to provide an impact overview of the Company’s investment portfolio as of February 28, 2015: |
Impact Overview as of February 28, 2015
The Company’s borrower companies currently employ a total of 10,233 employees.
Percentage of the 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 | 56 | % | ||
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 | 83 | % | ||
Top Borrower Impact Objectives (total over 100% as borrowers can choose multiple) | ||||
Job Creation | 89 | % | ||
Agricultural Productivity & Food Security | 17 | % | ||
Capacity-Building | 6 | % | ||
Equality and Empowerment | 6 | % | ||
Wage Increase | 6 | % | ||
Additional Borrower Impact Highlights | ||||
Percentage of employees receiving training or technical assistance | 27 | % | ||
Percentage of female employees | 13 | % | ||
| 3. | The following disclosure supplements the “Business—Investments—Investment Spotlight” section of the Prospectus to provide an informational overview with respect to the Company’s investments, as of February 28, 2015: |
Farm Supplies Distributor
Investment Overview
Investment Type | Senior Secured Trade Finance | |
Structure | Inventory and Receivable Financing | |
Facility Amount | $15,000,000 | |
Approximate Repayment Period | < 1 year | |
Interest Rate1 | 12.08% | |
Sector | Miscellaneous Non-Durable Goods | |
Collateral Coverage Ratio2 | ³1.25x | |
Environmental, Social, and Governance Screens | Compliant | |
Primary Impact Objective | Job Creation |
| 1 | The 12.08% interest rate is a blended rate based on the different phases of the transaction cycle. |
| 2 | The collateral coverage ratio is the amount of collateral the borrower must maintain in relation to the total amount outstanding on the facility. |
Borrower Background
The Company has provided financing to a farm supplies distributor in Zambia. Incorporated in 2010, the borrower specializes in the warehousing and country-wide distribution of key agricultural goods, including maize, soya beans, ground nuts, seed and fertilizer. As a farm supplies distributor, the borrower plays a vital role in catalyzing the sector’s growth and productivity while ensuring improved market access for both producers and
consumers. As a goods-to-market facilitator, the borrower purchases product from small-scale farmers and farmer associations for resale and distribution. The borrower also imports finished fertilizer product from a network of international suppliers for distribution to agricultural producers throughout Zambia. By providing short-term liquidity for the purchase of additional fertilizer imports, it is anticipated that the Company’s financing will support the borrower’s growth and employment generation objectives. In addition, the financing will help reinforce its efforts in becoming one of Zambia’s leading farm supply distributors and key players in improving the country’s agricultural productivity and food security. Additionally, the borrower:
| • | Is registered as a Citizen-Owned Company by Zambia’s Citizens Economic Empowerment Act, which promotes the empowerment of citizens whose access to economic resources and development capacity has been constrained. |
| • | Provides two fertilizer products for distribution to small-scale farmers and farmer associations throughout Zambia as a part of the Government of Zambia’s Farmer Input Support Program. |
| • | Provides its employees with training opportunities in computer literacy and technical driving skills for forklift and truck fleet operators. The borrower supports local sports clubs to promote health and well-being in the communities where it operates. |