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.”
