Private Credit

Supply Chain Financing I.R

Annualized yield3

Term3

5 months

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Status

Closed

Recently funded

Accepting $10,000 - $1,000,000 investments

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Accepting $10,000 - $1,000,000 investments

Overview

Invest in a supply chain financing facility provided to a global conglomerate in the consumer goods industry with annual revenues of over $2B. The conglomerate is a US-based manufacturer and distributor of durable consumer goods and parts that has grown substantially in recent years.

The underlying borrower had their credit ratings upgraded in 2Q22 from of the three leading rating agencies to B+/B2 (positive), and historically generated operating cash flow and maintained liquidity sufficient to service debt and unsecured trade payments.

Updates on prior Supply Chain Financing vintages

• View the most recent updates for Supply Chain Financing I.O and Supply Chain Financing I.P.

Premise

Potential benefits of investing in short-term private debt

  • An attractive alternative to fixed-income investments.
  • Additional portfolio diversification given typically low correlation to public markets.
  • Short-term private debt may offer higher returns than liquid bonds due to a premium for illiquidity as it isn’t traded daily and pricing is not transparent.

Supply chains are an integral part of every product we touch

  • Supply chains power global trade.
  • However, supply chains can be burdensome, as the delivery of goods and the timing of payments may be misaligned.
  • Supply chain financing helps to 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 facility’s strong track record

  • The global conglomerate has been utilizing this facility since 2019, with over $1B funded in total to date.
  • Since the facility was created, the global conglomerate has never missed a payment.
  • Since July 2020, Yieldstreet has been providing funding to the facility.
  • To date, we have funded ~$355M of Supply Chain Financing I series offerings, and more than $296M of principal and interest has been repaid.
  • This offering will be the 25th time we have funded the program. All previously matured offerings have fully repaid, and active offerings continue to perform in line with expectations.

Investment managed by an experienced servicer

  • Raistone Capital serves as the servicer of the facility, brings deep trade finance experience and today reports over $2B of investable pipeline.
  • Raistone will continue to service this facility.

Clear business plan working with an accomplished conglomerate

  • Yieldstreet has funded $12,644,005.64 of approved supplier invoices.
  • A Yieldstreet Affiliate has funded $2,192,739.74.
  • 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 December 7, 2022.

Essentials

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

Capital structure

Where does Yieldstreet lie in terms of priority?

  • 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

How do I get paid?

  • Investors are expected to earn interest at an annualized net target yield of 8.3%, net of Yieldstreet's management fee and other expenses as set forth in the Series Note Supplement.
  • The offering has a term of 6 months.
  • Investors can expect to receive a single principal and interest payment at maturity.
  • 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.

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  • Returns & Management fees

    Annual management fee

    1.5%

    Target ann'l net yield

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  • Schedule

    Payment schedule

    At maturity

    Interest type

    Actual 360

    Target term

    5 months

  • Structure

    Tax document

    1099-INT

    Offering structure

    BPDN

    Annual flat expense

    0.25%

Docs

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.