LOS ANGELES--(BUSINESS WIRE)--TriLinc Global Impact Fund (“TriLinc” or the “Company”) announced today that it has recently approved $24.5 million in term loan and trade finance transactions with companies operating in Sub-Saharan Africa. 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 approved the term loan and trade finance transactions, which meet the Company’s requirements for underwriting, economic development and societal advancement, as described below:
On May 10, 2016, TriLinc funded $184,308 as part of an existing $5,000,000 senior secured pre-export trade finance facility to an Italian international development logistics provider contracted by the United Nations to consolidate and ship prefabricated housing units and materials for UN mission personnel throughout Africa. With an interest rate of 8.50% plus six month Euribor (if positive) and secured by UN purchase orders, TriLinc’s financing will allow the borrower to access new markets and continue supporting the UN’s operations across Sub-Saharan Africa. This transaction is set to mature on October 12, 2016.
Between May 20 and May 24, 2016, TriLinc funded two separate transactions totaling $1,250,000 as part of an existing $2,800,000 revolving senior secured trade finance facility to a vertically-integrated South African meat processing company. With a fixed interest rate of 14.50% and maturity date of March 17, 2017, both transactions are secured by livestock feed inventory. TriLinc’s financing is expected to continue supporting the borrower’s growth objectives, including expansion of its employee base, distribution network, and community engagement initiatives.
On May 25, 2016, TriLinc funded $1,500,000 as part of an existing $11,000,000 revolving senior secured trade finance facility with a South African electronics company that assembles affordable cellular phones and televisions. With a fixed interest rate of 13.00%, the transaction is set to mature on August 23, 2016 and is secured by the stock being delivered to the warehouse. The borrower anticipates that TriLinc’s financing will support its continued growth efforts and create more jobs, particularly among the country’s female population, while increasing the supply of affordable devices in the region.
On May 25, 2016, TriLinc funded $4,570,619 as part of a new $5,000,000 senior secured four year term loan to a South African locomotive and railway equipment leasing company. With an interest rate of 12.00%, the transaction is set to mature on January 31, 2020 and is secured by first security interest over leased machinery and cash flows derived from the underlying lease contracts. TriLinc’s financing will be used by the borrower to purchase refurbished locomotives to fulfill pending lease contracts with various clients operating in Africa. The borrower anticipates that TriLinc’s financing will facilitate improvements in regional trade, market access, and productivity and competitiveness across the continent’s growth industries and geographies.
On May 27, 2016, TriLinc funded $17,000,000 as part of a new senior secured term loan to a hospitality service provider operating in Cape Verde. With an interest rate of 10.00% plus 3.50% in deferred interest and a maturity date of August 21, 2021, TriLinc’s financing will enable the borrower to execute its growth plan and develop two new hotel resort properties located throughout Cape Verde’s archipelago. Secured through a combination of first and second lien pledges over key assets and contracts, the transaction also includes the option to exercise certain warrants (1.50% of the common shares of the borrower) at loan maturity. The borrower anticipates that TriLinc’s timely financing will support both temporary and permanent job creation as well as the transfer of knowledge and skills in hospitality best practices to the local labor force.
“TriLinc’s recent investments in Sub-Saharan Africa demonstrate our commitment to supporting economic development, integration, and competitiveness in the region,” said Gloria Nelund, TriLinc CEO. “From financing a regional transport infrastructure equipment supplier in South Africa to supporting a burgeoning tourism industry in Cape Verde, TriLinc is responding to the financing needs of growing enterprises that seek to satisfy a diverse set of market needs while also making tangible contributions to regional economic progress and local livelihoods.”
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. TriLinc’s investment objectives are to generate current income, capital preservation and modest capital appreciation. In addition, the Company aggregates and analyzes social, economic, and environmental impact data to track progress and measure success against stated objectives.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. The Company undertakes no obligation to update any forward-looking statement contained herein to conform the statement to actual results or changes in the Company's expectations.
