Private Credit

Supply Chain Financing II.C

Annual interest3

Final term

3 months

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Status

Fully repaid

Recently funded

Accepting $10,000 - $250,000 investments

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Accepting $10,000 - $250,000 investments

Overview

This is an opportunity to invest in the same supply chain financing program with the same global distributor offered to investors in Supply Chain Financing II and Supply Chain Financing II.B. Yieldstreet has again participated in the supply chain financing program for an international distributor in the paper, packaging, and lumber industry. The receivables acquired were from suppliers of containerboard mostly used in the transportation of produce and other items. The distributor has a proven track record with more than 20 years of operations, over $300M in annual revenue and more than $10M of EBITDA in 2019.

Given that demand for the distributor’s products has increased, this supply chain financing is intended to further enable the distributor to support their revenue growth and fill their orders timely. Yieldstreet’s participation in the receivables financing enables the distributor’s supplier of containerboard to get paid immediately (at a discount) and the distributor has an obligation to pay the full amount of the invoices to Yieldstreet on May 17, 2021.

The originator of this financing opportunity, Raistone Capital, has raised ~$20M for this supply chain financing program, ~$15M of which has been funded by Yieldstreet to date. The remaining ~$5M has been funded by several other institutional investors.

Investors are expected to earn a 7.5% target annualized interest rate. Principal and interest are scheduled to be paid at maturity.

Yield

Management fee

1.25%

Target net yield

7.5%

Interest type

Actual 360

Schedule

Payment schedule

At Maturity

Prefunded

Maturity

Date

Maturity

May 17, 2021

Structure

Tax document

1099-INT

Offering structure

Expenses

First year expense

$35

Annual flat expense

$0

Slide 1 of 3
  • Yield

    Management fee

    1.25%

    Target net yield

    7.5%

    Interest type

    Actual 360

  • Schedule

    Payment schedule

    At Maturity

    Prefunded

    Maturity

    Date

    Maturity

    May 17, 2021

  • Structure

    Tax document

    1099-INT

    Offering structure

    Expenses

    First year expense

    $35

    Annual flat expense

    $0

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Essentials

Please refer to the Series Note Supplement for more details about this offering.

Capital Structure

Where does Yieldstreet lie in terms of priority?

Repayments to Yieldstreet are unsecured and will be made out of cash flow in the ordinary course of business like other trade payables. The distributor is a borrower under a working capital revolving credit facility and the lender has a lien on all of the distributor’s assets.

Cash Flow

How do I get paid?

You can expect to receive a single principal and interest payment at a target annualized interest rate of 7.5% at maturity.

Assets

What is the repayment obligation underlying the transaction?

The primary source of repayment is the distributor’s cash flow from operations and advances under their revolving line of credit. The distributor has confirmed receipt of the goods from their suppliers and has issued an Irrevocable Payment Undertaking (“IPU”), which obligates the distributor to pay the full amount of the invoices without any reduction, setoff, or counterclaim on May 17, 2021. The repayment obligation is unsecured.

Total gross amount of the payments due to Yieldstreet under the IPU is $4,982,449.29. This amount is intended to cover principal, interest and fees.

Highlights

Experienced Distributor
Company Payment Obligation
Increased Demand
Approved Supplier Invoices
Experienced Originator
  • The distributor supplies containerboard and tissue to a variety of domestic and international customers in five regions of the world: North America, South America, Italy, Spain, and Hong Kong. The distributor also supplies lumber and related building products, primarily in the United States, for the construction of multi-family homes.

    The management team has a proven track record of growing revenue and generating operating cash flow sufficient to service debts and trade payments. The distributor has been in business for decades and has built and sustained growing, long-term relationships with customers and suppliers around the globe.

  • The distributor has provided an IPU that obligates them to pay in full on the maturity date of May 17, 2021. To ensure that there is adequate cash flow to make payments as they come due, the distributor has purchased credit insurance for their receivables from an internationally recognized credit insurance agency rated A by A.M. Best. In addition, they have a nine-figure working capital revolving credit facility with a regional bank.

  • Since the pandemic began, demand for cardboard, paper and lumber products has increased. Restaurants are now using much more paper in an attempt to cater to the growing number of take-out orders they receive. Consumers are buying more goods online and are having them shipped to their homes, generating the need for more boxes. Homeowners are now spending more time at home, which has led to an increase in renovation projects, increasing the need for lumber and building-related materials. People are also leaving dense cities for the suburbs, as such, construction of multi-family homes has spiked.

    The distributor has many customers with growing needs for product in the transportation of produce, packaging supplies and the construction industry. The distributor is benefiting from the current increase in demand across all of these industries both domestically and internationally.

  • All invoices that are part of this supply chain financing were approved by the distributor and reviewed by Raistone.

  • Raistone Capital is a market-leading provider of accounts receivable financing, helping companies manage their cash conversion cycle and providing them with much needed liquidity to grow and thrive. The collective expertise of Raistone’s accomplished leadership team is made up of industry veterans hailing from the world’s largest trade finance institutions, amounting to over $500B of receivable assets purchased and 150 supply chain finance programs created over the last 15 years. The firm’s industry experience and cloud-based technology is combined with its extremely prudent, market-tested credit underwriting.

Resources

This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS AltNotes I LLC ("Issuer"). The Offering is made only by means of the Private Placement Memorandum dated January 14, 2022 and the Series Note Supplement relating to the Offering (collectively, the "Offering Documents"). The information on this offering page is a summary of the Offering, does not purport to be complete and should not be considered a part of the Offering Documents, or as incorporated in the Offering Documents by reference or as forming the basis of the Offering. No person has been authorized to give any information or to make any representations other than those contained in the Offering Documents or in any marketing or sales literature issued by the Issuer or Yieldstreet Management, LLC, as adviser thereto, and referred to in the Offering Documents, and, if given or made, such information or representations must not be relied upon. All investors must read the Offering Documents in their entirety prior to investing in the securities.

Investing in private markets and alternatives, such as this offering, is speculative and involves a risk of loss, and those investors who cannot afford to lose their entire investment should not invest. Returns are not guaranteed.