Accepting $10,000 - $250,000 investments
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Accepting $10,000 - $250,000 investments
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.
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Do you like this offering?
Please refer to the Series Note Supplement for more details about this offering.
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.
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.
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.
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.