Supply Chain Financing Limited Term I.C
Fully repaid
Recently funded
Accepting $10,000 - $500,000 investments
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Accepting $10,000 - $500,000 investments
Overview
Invest in a supply chain financing facility provided to a global conglomerate in the consumer goods industry with annual revenues of over $2 billion dollars. To date, Yieldstreet has provided approximately $244M to this supply chain financing program and the borrower has repaid over $110M in principal and interest 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 alleviates these inefficiencies by providing capital to suppliers at time of shipment, and allowing purchasers extended payment terms. When supply chain financing programs are used both buyers and suppliers benefit, ultimately contributing to their growth and innovation.
The offering has a term of 16 months remaining (consisting of three anticipated 6-month participations). At launch, Yieldstreet will own one 6-month supply chain financing participation. As the first and second participations mature and are repaid, principal is expected to be reinvested in a new 6-month supply chain financing participation, subject to the availability of the program. Investors are expected to earn a target annualized yield of 9.5%, distributed semi-annually with principal repaid by maturity.
Important Notes
• Learn more about supply chain financing programs here.
• This investment is an opportunity to invest in the same supply chain financing program with the same multi-billion dollar conglomerate offered to investors in the 6-month SCF I series, which have either fully repaid or continue to perform in line with expectations.
Highlights
Notable track record
Approved supplier invoices
Company payment obligation
Experienced conglomerate
Experienced originator
Essentials
Please refer the Series Note Supplement for more details about this offering.
Please refer the Series Note Supplement for more details about this offering.
Capital Structure
Capital Structure
Where does Yieldstreet lie in terms of priority?
Payments to Yieldstreet are unsecured and will be made out of cash flow from the conglomerate in their ordinary course of business like other trade payables. The conglomerate is a borrower under a secured working capital revolving credit facility with a revolving credit lender and the revolving credit lender has a lien on all of the conglomerate’s assets.
Cash Flow
Cash Flow
How do I get paid?
Investors can expect to receive payments at an annualized targeted yield of 9.5%, distributed semi-annually. Principal is expected to be repaid at the offering's maturity date, although there may be de minimis principal repayments at maturity of each underlying participation.
Assets
Assets
What is the repayment obligation underlying the transaction?
The primary sources of repayment are the conglomerate’s cash flow from operations and advances under their revolving line of credit. The conglomerate has confirmed receipt of the goods from their suppliers and has issued an Irrevocable Payment Undertaking (“IPU”), which obligates it to pay the full amount of the invoices without any reduction, setoff, or counterclaim. The payment obligation is unsecured.
The initial gross amount of the payments due to Yieldstreet under the first IPU is $12,086,156.77. The IPUs due to Yieldstreet will vary as the subsequent 6-month participations are reinvested because the value of approved invoices is unlikely to be the exact same. Principal is expected to be recycled for up to two, 6-month periods until maturity at the end of three complete cycles, or 18 months, subject to the availability of participations.
Yield
Ann'l management fee
2%
Target ann'l net yield
9.5%
Structure
Tax document
1099-INT
Offering structure
BPDN
Expenses
First year expense
$100
Annual Flat Expense
$30
Resources
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]