Overview
Invest in a supply chain financing facility provided to a global conglomerate in the consumer goods industry with annual revenues of over $2B. To date, Yieldstreet has provided approximately $261M to this supply chain financing program and the conglomerate has repaid over $124M in principal and interest across 7 offerings in full and on time. The remaining Supply Chain Financing I offerings continue to perform in line with expectations.
Supply chains power global trade and are an integral part of every product we touch. However, supply chains can be burdensome, as the delivery of goods and the timing of payments may be misaligned. Supply chain financing help alleviate inefficiencies by providing prompt payment to suppliers at time of shipment, while allowing purchasers to pay on more extended payment terms. Supply chain financing therefore has the potential to benefit both buyers and suppliers, contributing to their growth and innovation.
The offering has a targeted term of 5 months remaining. Investors are expected to earn interest at an annualized target yield of 8.5%. Principal and interest is expected to be repaid at maturity.
Rollover option
If you are an investor in Supply Chain Financing I.G, which is expected to fully repay by the end of the day on 10/22, you have the opportunity to roll over the incoming principal repayment into this offering at the time of your new investment request.
Highlights
Track record
Experienced conglomerate
Servicer
Essentials
Please refer to the Series Note Supplement in the docs section for more details about this offering.
Please refer to the Series Note Supplement in the docs section for more details about this offering.
Capital structure
Capital structure
Where does Yieldstreet lie in terms of priority?
Yieldstreet has funded $16,018,520.68 of approved supplier invoices. The conglomerate’s obligation to pay is a contractual obligation that is not secured by any assets. Repayments are expected to be made by the conglomerate in the ordinary course of business like other trade and business payables that are dependent on the conglomerate’s cash flow.
Cash flow
Cash flow
How do I get paid?
The offering has a term of 5 months remaining. Investors can expect to receive a single principal and interest payment by maturity, net of all fees, including any excess spread.
Any excess spread earned on the participation (calculated as the difference between the total proceeds Yieldstreet receives on the facility and the target net return plus the management fee) will be retained by Yieldstreet. Please see the Series Note Supplement for further details.
Repayment obligation
Repayment obligation
What is the repayment obligation underlying the transaction?
The conglomerate is bound by the terms of an Irrevocable Payment Undertaking (“IPU”), which contractually obligates it to pay the full amount of the approved invoices without any reduction, setoff, or counterclaim on March 16, 2022. The $16,963,596.87 payment obligation of the conglomerate is not debt, but instead an unsecured contractual commitment.
The contracted payment amount is expected to cover principal, interest and fees.
Returns & management fees
Management fee
1.5%
Target net ann'l yield
8.5%
Schedule
Payment schedule
At maturity
Interest type
Actual 360
Prefunded
Term
Date
Target term
Mar 16, 2022
Structure
Tax document
1099-INT
Offering structure
BPDN
Expenses
First year expense
$50
Annual flat expense
$0
Docs
Content
This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS ALTNOTES II 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.
2 Represents an average net realized internal rate of return (IRR) with respect to all matured investments in your portfolio, utilizing the effective dates and amounts to and from the investments and net of management fees and all other expenses charged to the investments. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. All securities involve risk and may result in significant losses, including the loss of principal invested.[read more]