Collision of equilibria with a splitting manifold has been locally studied, but might also be a contributing factor to global bifurcations. In particular, a boundary collision can be coincident with collision of a virtual equilibrium with a periodic orbit, giving an analogue to a homoclinic bifurcation. This type of bifurcation is demonstrated in a non-smooth climate application. Here, we describe the non-smooth bifurcation structure, as well as the smooth bifurcation structure for which the non-smooth homoclinic bifurcation is a limiting case.