Filed Pursuant to Rule 424(b)(3)
Registration No. 333-185676
TRILINC GLOBAL IMPACT FUND, LLC
SUPPLEMENT NO. 4 DATED JULY 10, 2015
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, and Prospectus Supplement No. 3, dated June 5, 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 update the section of the Prospectus titled “Business;” |
| D. | To update the section of the Prospectus titled “Management of the Company;” and |
| E. | To update the section of the Prospectus titled “Our Expenses.” |
| A. | Status of Our Public Offering |
As of July 8, 2015, we had raised gross proceeds of approximately $96.0 million from the sale of approximately 10.1 million units of our limited liability company interest, including units issued pursuant to our distribution reinvestment plan.
| B. | Declaration of Distributions |
On June 12, 2015, with the authorization of our board of managers, the Company declared distributions for all classes of units for the period from June 1 through June 30, 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 July 1, 2015, $365,774 of these distributions were paid in cash and on June 30, 2015, $197,201 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 June 30, 2015: |
| Investments |
Since the Company commenced operations and through June 30, 2015, the Company has funded in excess of $144.7 million in in aggregate investments, including $25.7 million in short-term investments. As of June 30, 2015, the Company’s portfolio consisted of $75.8 million in total loan commitments, with $53.3 million in current loan outstandings across 17 separate investments. Given the Company’s weighted average portfolio duration of less than a year, a significant portion of the secured borrower debt has paid off and been reinvested in new transactions.
As of June 30, 2015, 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 | ||||||||||||||
Agricultural Supplies Producer | Agricultural Chemicals | South Africa | Trade Finance | 3/12/2015 | 13.00% | $ | 10,000,000 | $ | 1,387,320 | Job Creation | ||||||||||||
Agriculture Distributor | Farm-Product Raw Materials | Argentina | Trade Finance | 12/15/2015 | 9.00% | $ | 7,000,000 | $ | 7,000,000 | Job Creation | ||||||||||||
Beef Exporter5 | Meat Products | Argentina | Trade Finance | 12/15/2015 | 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 Distributor | Cement, Hydraulic | Kenya | Trade Finance | 9/30/2015 | 14.75% | $ | 7,000,000 | $ | 5,000,000 | Job Creation | ||||||||||||
Construction Materials Distributor | Hardware, Plumbing, and Heating Equipment | South Africa | Trade Finance | 7/1/2015 | 12.75% | $ | 750,000 | $ | 324,773 | 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 Manufacturer | Converted Paper and Paperboard Products | Peru | Term Loan | 6/15/2017 | 15.57% | 6 | $ | 2,750,000 | $ | 2,750,000 | Job Creation | |||||||||||
Farm Supplies Distributor | Miscellaneous Non-Durable Goods | Zambia | Trade Finance | 10/25/2015 | 12.12% | $ | 15,000,000 | $ | 8,000,000 | Job Creation | ||||||||||||
Fruit & Nut Distributor | Groceries and Related Products | South Africa | Trade Finance | 5/22/2015 | 17.50% | $ | 1,250,000 | $ | 796,587 | Job Creation | ||||||||||||
Meat Processor | Meat Products | South Africa | Trade Finance | 1/28/2016 | 14.50% | $ | 2,800,000 | $ | 1,911,909 | Job Creation | ||||||||||||
Mine Remediation Company | Metal Mining Services | South Africa | Trade Finance | 2/2/2016 | 17.50% | $ | 3,250,000 | 2,418,284 | Job Creation | |||||||||||||
Rice & Bean Importer | Groceries and Related Products | South Africa | Trade Finance | 6/27/2015 | 12.50% | $ | 1,000,000 | $ | 1,000,000 | Job Creation | ||||||||||||
Soybean Distributor7 | Fats and Oils | Argentina | Trade Finance | 2/3/2016 | 8.89% | $ | 3,100,000 | $ | 3,100,000 | Job Creation | ||||||||||||
Sugar Producer | Field Crops, Except Cash Grains | Brazil | Term Loan | 5/15/2017 | 17.43% | 8 | $ | 3,000,000 | $ | 3,000,000 | Capacity- Building | |||||||||||
Textile Distributor9 | Apparel, Piece Goods, and Notions | South Africa | Trade Finance | 9/10/2015 | 15.00% | $ | 2,500,000 | 1,270,831 | Job Creation | |||||||||||||
Investment Portfolio Total |
| $ | 75,800,000 | $ | 53,335,126 | |||||||||||||||||
Short-Term Investments10 | ||||||||||||||||||||||
Rice Producer | Cash Grains | Tanzania | Short-Term | 8/3/2015 | 11.50% | $ | 3,900,000 | $ | 3,900,000 | N/A | ||||||||||||
Farm Supplies Importer | Miscellaneous Non-Durable Goods | South Africa | Short-Term | 6/22/2015 | 13.00% | $ | 2,000,000 | $ | 750,000 | N/A | ||||||||||||
Agricultural Products Exporter11 | Farm-Product Raw Materials | Singapore | Short-Term | 8/22/2015 | 9.00% | $ | 10,000,000 | $ | 10,000,000 | N/A | ||||||||||||
Farm Supplies Wholesaler | Miscellaneous Non-Durable Goods | South Africa | Short-Term | 7/19/2015 | 12.50% | $ | 1,000,000 | $ | 1,000,000 | N/A | ||||||||||||
Short-Term Investment Total |
| $ | 16,900,000 | $ | 15,650,000 | |||||||||||||||||
Investment Portfolio and Short-Term Investment Totals |
| $ | 92,700,000 | $ | 68,985,126 | |||||||||||||||||
| 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 June 30, 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 June 30, 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 June 9, 2015, the Company funded two separate transactions totaling $6,000,000 as part of an existing $7,000,000 revolving trade finance facility at an interest rate of 11.98% to the Beef Exporter. Secured by purchase contracts and receivables, both transactions are set to mature on December 15, 2015. 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 | The Soybean Distributor has been in operation since 1929 and primarily engaged in the processing and distribution of Argentine soybean, sunflower, and cotton oilseed. |
| 8 | The interest rate includes 5.00% of penalty interest because the borrower has missed two interest payments. |
| 9 | On June 17, 2015, TriLinc funded $274,813 as part of an existing $2,500,000 revolving trade finance facility at a fixed interest rate of 15.00% to the Textile Distributor. Set to mature on September 10, 2015, the transaction is secured by specific inventory being imported into South Africa from Asia. The borrower anticipates that the Company’s financing will support employment generation. |
| 10 | 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. |
| 11 | The transaction is secured by specific collateral held by the borrower’s subsidiaries in Kenya, Tanzania, and Zambia. |
As of June 30, 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 | ||||||||||||||
Waste Management Equipment Distributor | Machinery, Equipment, and Supplies | South Africa | Trade Finance | 2/13/2015 | $ | 310,752 | 5/15/2015 | 20.19 | % | | Equality & Empowerment | | ||||||||||||
Portfolio Totals | $ | 13,530,077 | ||||||||||||||||||||||
| 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 Characteristics1
Total Assets (est.) | $ | 85,043,394 | ||
Current Loan Commitments | $ | 75,800,000 | ||
Leverage | 0% | |||
Weighted Average Portfolio Loan Size | $ | 3,797,417 | ||
Weighted Average Portfolio Duration | 0.48 years | |||
Weighted Average Position Yield | 12.6% | |||
USD Denominated | 100% | |||
Countries2 | 7 | |||
Sectors2 | 14 |
Top Five Investments by Percentage
Company Description | Country | % of Total Assets | ||||
Farm Supplies Distributor | Zambia | 9.4% | ||||
Agriculture Distributor | Argentina | 8.2% | ||||
Beef Exporter | Argentina | 7.1% | ||||
Dairy Co-Operative | Argentina | 7.1% | ||||
Cement Distributor | Kenya | 5.9% | ||||
| 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. |
| 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 June 30, 2015:1 |
The Company’s borrower companies currently employ a total of 10,386 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 | 53 | % | ||
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 | 82 | % | ||
Top 5 Borrower Impact Objectives | ||||
1. Job Creation | 94 | % | ||
2. Agricultural Productivity & Food Security | 18 | % | ||
3. Capacity-Building | 6 | % | ||
4. Wage Increase | 6 | % | ||
5. Health Improvement | 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 |
| 1 | All information provided in this section pertains exclusively to the Company’s Investment Portfolio and therefore does not include the Company’s Short-Term Investments. |
| 3. | The following disclosure is inserted at the end of the section titled “Business—Investments—Investment Spotlights of Exited Positions” on page 97 of the Prospectus: |
Waste Management Equipment Distributor
Investment Overview
| Investment Type | Senior Secured Trade Finance | |
| Structure | Purchase and Repurchase Loan Facility | |
| Facility Amount1 | $500,000 | |
| Interest Rate | 19.5% | |
| Approximate Repayment Period2 | < 1 year | |
| Sector | Machinery, Equipment, and Supplies | |
| Collateral Coverage Ratio3 | ³1.17x | |
| Environmental, Social, and Governance Screens | Compliant | |
| Primary Impact Objective | Equality & Empowerment |
| 1 | The facility amount represents the current amount that is available to the borrower under the agreement. This amount may change over time. |
| 2 | Represents approximate repayment period of transactions drawn under the facility. Due to the revolving nature of trade finance facilities and the timing of their underlying transactions, the length of each transaction repayment period may vary, but generally will not exceed one year. |
| 3 | 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
With a 2013 GDP of $366.1 billion and a population of 53.2 million, South Africa is the second largest economy in Sub-Saharan Africa and 33rd largest in the world according to the World Bank. Fueling this relatively large economy are the country’s bourgeoning urban centers, where approximately 33.9 million (63.7%) of South Africans live, as noted by the World Bank.
Recognized as the economic and cultural center of South Africa, Johannesburg is the country’s largest city with an estimated population of 4.4 million in 2011, according to Government of South Africa’s national statistics agency. As Johannesburg’s population continues to grow, increasing demands on the city’s resources and infrastructure have compelled both the private and public sectors to find solutions for a more socially and environmentally sustainable future.
Between February 2015 and May 2015, the Company extended up to $500,000 in financing commitments as part of a trade finance facility to a small, locally-owned and operated waste management equipment distributor in Johannesburg. Ranging from wood chippers to tire shredders, the borrower provides its customers with highly innovative and state-of-the-art equipment that reduces waste and minimizes environmental impact. Proceeds from the Company’s financing were used to provide the borrower with short-term liquidity for the purchase and import of equipment for sale to the City of Johannesburg’s exclusive recycling and waste management service provider.
With the imported equipment, the borrower enabled its customer to more effectively and efficiently manage the city’s excess building and demolition waste and support the City of Johannesburg’s vision of becoming a city that provides sustainability for all of its citizens by 2040. As one of only a handful of black-owned and operated companies that provide environmental management and waste management solutions in South Africa, the Company’s financing also supported the borrower’s efforts to further promote the participation of women and minorities in the workplace.
| D. | Update to the Section Titled “Management of the Company” |
| 1. | The fourth and fifth sentences in the third paragraph of Paul Sanford’s biography on page 118 of the Prospectus are deleted in their entirety. |
| 2. | The third sentence in the second paragraph of R. Michael Barth’s biography on page 119 of the Prospectus is deleted in its entirety and replaced with the following: |
“Mr. Barth is currently Chairman of the Board of SFC Ltd., part of the AfricInvest Group, and is also a member of the Boards of Directors of FINCA Microfinance Holding and SNV (USA), Bamboo Finance (Luxembourg), and SNV (USA).”
| E. | Update to the Section Titled “Our Expenses” |
The third sentence in the “Other Operating Expenses” paragraph of the “Ongoing Annual Company Expenses” sub-section on page 133 of the Prospectus is deleted in its entirety.