TriLinc Global Impact Fund (TriLinc) announced today that it recently approved approximately $19.4 million in term loan and trade finance transactions, bringing total financing commitments as of October 31, 2018 to $426.1 million for business expansion and socioeconomic development through its holdings in Sub-Saharan Africa, Latin America, Southeast Asia, and Emerging Europe.
On October 15, 2018, TriLinc funded $19,000,000 as part of a new senior secured five year term loan to a fiber optics network provider in Colombia. Priced at a 9.00% cash coupon and 3.00% PIK, the transaction is set to mature on October 15, 2023 and is secured by assigned contracts, an asset pledge, and assigned shares, among others, with a collateral coverage ratio of 2.1x. The company manages one of the countrys nationwide fiber-optic networks, which was created to increase Colombias broadband access across 924 municipalities, with the potential of reaching 38 million people and 1.9 million businesses, including SMEs.
TriLincs financing will support the company in monetizing the network through funding the subscriber acquisition cost capital expenditures and network capital expenditures which include last mile fiber, customer equipment and installation costs. On October 16, 2018, TriLinc funded $426,580 as part of an existing senior secured trade finance facility originated by its sub-advisor, Barak Fund Management Ltd (Barak), to a South African electronics assembler. TriLincs total participation commitment amount to the borrower is $6,029,026. Priced at 12.00% the transaction is set to mature on February 14, 2019 and is secured by the stock delivered to the warehouse, with a collateral coverage ratio of 1.17x. The borrower anticipates that TriLincs financing will increase the supply of affordable and accessible mobile technology in the region. In addition, pursuant to the agreement between TriLinc and Barak, after November 5, 2018 up until November 30, 2018, TriLinc has the right to sell the participation back to Barak upon at least 10 business days notice at a price equal to 100% of outstanding principal plus accrued interest as of the date of sale. TriLincs recent investment activity demonstrates our commitment to diversifying our portfolio through supporting borrower companies operating within an array of industries, said Gloria Nelund, CEO of TriLinc. By extending financing to companies like the fiber optic network provider, TriLinc is helping strengthen internet infrastructure that supports access to information, job creation, and productivity and competitiveness across Colombia. …
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Source: US SEC
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