Filed Pursuant to Rule 424(b)(3)
Registration No. 333-185676
TRILINC GLOBAL IMPACT FUND, LLC
SUPPLEMENT NO. 18 DATED APRIL 10, 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, Prospectus Supplement No. 16, dated February 20, 2015, and Prospectus Supplement No. 17, dated March 6, 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; and |
| C. | To update the section of the Prospectus titled “Business.” |
| A. | Status of Our Public Offering |
As of April 9, 2015, we had raised gross proceeds of approximately $81.2 million from the sale of approximately 8.6 million units of our limited liability company interest, including units issued pursuant to our distribution reinvestment plan.
| B. | Declaration of Distributions |
On March 24, 2015, with the authorization of our board of managers, the Company declared distributions for all classes of units for the period from March 1 through March 31, 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 April 1, 2015, $337,611 of these distributions were paid in cash and on March 31, 2015, $159,495 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 March 31, 2015: |
Investments
Since the Company commenced operations and through March 31, 2015, the Company has funded in excess of $102.8 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 | $ | 2,277,145 | Job Creation | |||||||||||
| Agriculture Distributor5 | Farm-Product Raw Materials | Argentina | Trade Finance | 12/11/2015 | 9.00 | % | $ | 7,000,000 | $ | 7,000,000 | 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 | 6/1/2015 | 12.91 | % | $ | 1,400,000 | $ | 1,375,422 | Job Creation | |||||||||||
| Cement Distributor6 | Cement, Hydraulic | Kenya | Trade Finance | 9/30/2015 | 14.25 | % | $ | 7,000,000 | $ | 7,000,000 | Job Creation | |||||||||||
| Construction Materials Distributor7 | Hardware, Plumbing, and Heating Equipment | South Africa | Trade Finance | 7/1/2015 | 12.75 | % | $ | 750,000 | $ | 453,645 | 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-Operative | Dairy Products | Argentina | Trade Finance | 2/25/2016 | 10.85 | % | $ | 6,000,000 | $ | 6,000,000 | Job Creation | |||||||||||
| Diaper Mfg.8 | Converted Paper and Paperboard Products | Peru | Term Loan | 6/15/2017 | 15.57 | % | $ | 2,750,000 | $ | 2,750,000 | Job Creation | |||||||||||
| Farm Supplies Distributor | Miscellaneous Non-Durable Goods | Zambia | Trade Finance | 10/25/2015 | 12.23 | % | $ | 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 | $ | 1,129,906 | Job Creation | |||||||||||
| Meat Processor9 | Meat Products | South Africa | Trade Finance | 1/28/2016 | 14.50 | % | $ | 2,800,000 | $ | 1,311,909 | Job Creation | |||||||||||
| Mine Remediation Co. | Metal Mining Services | South Africa | Trade Finance | 2/2/2016 | 17.50 | % | $ | 3,250,000 | $ | 2,547,135 | 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 | 7/9/2015 | 15.00 | % | $ | 2,500,000 | $ | 1,646,510 | Job Creation | |||||||||||
| Waste Management Equipment Distributor | Machinery, Equipment, and Supplies | South Africa | Trade Finance | 4/17/2015 | 19.50 | % | $ | 500,000 | $ | 67,915 | Equality & Empowerment | |||||||||||
Portfolio Totals | $ | 76,700,000 | $ | 56,774,938 | ||||||||||||||||||
| 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 March 31, 2015 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 of March 31, 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 March 16, 2015, the Company funded $1,000,000 to the Agriculture Distributor as part of an existing $7,000,000 revolving trade finance facility at a fixed interest rate of 9.00%. Set to mature on December 11, 2015, this transaction is secured by the assignment of purchase contracts and receivables. The borrower anticipates that the Company’s financing will support economic growth through job creation, increased exports and increased agricultural productivity. |
| 6 | On March 10 and March 17, 2015, the Company funded $2,000,000 and $5,000,000, respectively, as part of a$7,000,000 trade finance transaction at a fixed interest rate of 13.00% and 14.75%, respectively, to the Cement Distributor engaged in the production and distribution of cement. The transactions are set to mature on June 1 and September 30, 2015, respectively, and are supported by inventory, receivables, and other liquid assets. Founded in 2008, the borrower is a growing cement distributor that utilizes innovative energy efficient and eco-friendly cement grinding technology to improve sustainability. |
| 7 | On March 12, 2015, the Company funded $181,943 as part of an existing $750,000 trade finance facility at a fixed interest rate of 12.75% to the Construction Materials Supplier engaged in importing and distributing plastic piping and fittings for commercial and residential infrastructure purposes. The transaction, set to mature on July 1, 2015, is supported by specific piping and fitting inventory. The borrower anticipates that the Company financing will enable it to increase employment opportunities. |
| 8 | The interest rate includes 2.50% of deferred interest. |
| 9 | On March 3, 2015, the Company funded $350,000 as part of an existing $2,800,000 trade finance facility at a fixed interest rate of 14.50% to the vertically-integrated Meat Processor operating in the country’s rural provinces. The transaction, set to mature on January 28, 2016, is supported by inventory and has a collateral coverage ratio of³ 1.17x. The Company’s financing is expected to support the borrower’s continued growth through the expansion of its distribution network and the addition of more retail outlets in the country’s underserved low- to middle-income consumer market. As a part of this growth, the borrower anticipates that it will expand its employee base. |
| 10 | Between March 9 and March 31, 2015, the Company funded four separate transactions totaling $648,355 as part of an existing $2,500,000 revolving trade finance facility at a fixed interest rate of 15.00% to the Textile Distributor. All transactions are set to mature between June 18 and July 9, 2015 and are secured by specific inventory being imported into South Africa from Asia. The borrower anticipates that the Company’s financing will support employment generation. |
As of March 31, 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 loans have been paid off, these investments are 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.) | $ | 73,206,952 | ||
Current Loan Commitments | $ | 76,700,000 | ||
Leverage | 0 | % | ||
Weighted Average Portfolio Loan Size | $ | 3,867,688 | ||
Weighted Average Portfolio Duration | 0.49 years | |||
Weighted Average Position Yield | 12.6 | % | ||
USD Denominated | 100 | % | ||
Countries | 7 |
Top Five Investments by Percentage
| Company Description | Country | % of Total Assets | ||||
Farm Supplies Distributor | Zambia | 15.3 | % | |||
Agriculture Distributor | Argentina | 9.6 | % | |||
Cement Distributor | Kenya | 9.6 | % | |||
Beef Exporter | Argentina | 8.2 | % | |||
Dairy Co-Operative | Argentina | 8.2 | % | |||
Investment Type1 | Developing Economies1 | Sector Diversification1 | ||||
|  |  | ||||
| 1 | The above charts represent investment type, developing economy, and sector diversification as a percentage of the total amount outstanding of the Company’s portfolio. |
| 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 March 31, 2015: |
Impact Overview as of March 31, 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 5 Borrower Impact Objectives | ||||
1. Job Creation | 89 | % | ||
2. Agricultural Productivity & Food Security | 17 | % | ||
3. Capacity-Building | 6 | % | ||
4. Equality and Empowerment | 6 | % | ||
5. Wage Increase | 6 | % | ||
Top 5 Borrower Environmental and Social Practices | ||||
1. Waste Reduction | ||||
2. Fair Hiring and Recruiting | ||||
3. Energy Savings | ||||
4. Charitable Donations | ||||
5. Community Service |
| 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 March 31, 2015 |
Agricultural Supplies Producer
Investment Overview
| Investment Type | Senior Secured Trade Finance | |
| Structure | Inventory Financing | |
| Facility Amount | $10,000,000 | |
| Approximate Repayment Period | < 1 year | |
| Interest Rate1 | 13.00% | |
| Sector | Agricultural Chemicals | |
| Collateral Coverage Ratio2 | ³1.17x | |
| Environmental, Social, and Governance Screens | Compliant | |
| Primary Impact Objective | Job Creation |
| 1 | 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 an agricultural supplies producer in South Africa. Incorporated in 1999, the borrower produces and distributes specialized fertilizer products which seek to increase efficiency while strengthening sustainable crop growth and enhancing general soil health. The borrower seeks to shift the
traditional agricultural productivity paradigm from an increase in quantity of food produced to an increase in quantity and quality of nutritional value. In support of this shift, the borrower has implemented a proprietary technical assistance program for its customers that directs focus away from commodity fertilization toward a more scientific and biologically sustainable approach to soil utilization. While the borrower’s growth historically was dependent on competitive pricing, its current expansion is due to an emphasis on superior service and the resulting customer loyalty among its business-to-business and business-to-consumer client base throughout South Africa and the greater Sub-Saharan Africa region. The Company’s financing will provide the borrower with short-term liquidity to import supplies for further business expansion, which the borrower anticipates will lead to growth in its employee base. Additionally, the borrower:
| • | Implements a technical assistance program which aims to improve long-term sustainability through the provision of financial management advice and detailed analysis of each participating agricultural producer’s soil, tillage practices, fertilizer, pathogen, pest control policies, residue management techniques, and animal grazing practices. The borrower collects information utilizing its proprietary smartphone and tablet applications in order to monitor producer- and land-specific growing season characteristics and provide custom fertilizer recommendations to each producer. |
| • | Implements enterprise development programs for small and medium-sized enterprises owned by historically disadvantaged ethnic and indigenous groups. Programs include on-site visits to participant fields and training in best practices for fertilizer and herbicide application, soil and leaf sampling, pest and disease control, and weed identification and control. |
| • | Supports a community center that provides food and assistance to vulnerable and orphaned children. Additionally, as a responsible corporate citizen, the borrower promotes healthy lifestyle habits through its support of local community sports. |
| • | Places special emphasis on education and provides scholarship funding to students at a local agricultural technical college. It also contributes to a national educational trust that benefits disadvantaged children, particularly in rural areas. |