Private Credit

Supply Chain Financing Limited Term I.B

Annualized yield3

Final term

5 months

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Status

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
  • Raistone has now provided over $400M to the conglomerate via this facility, ~$244M of which has been funded by Yieldstreet since July 2020, with more than $110M in principal and interest repayments.

  • All invoices have been approved by the conglomerate and Raistone in order to be eligible for the supply chain financing program. Raistone then acquired the approved accounts receivable from the suppliers at a discounted purchase price, and the conglomerate has agreed to pay the non-discounted invoice amount by maturity.

  • The conglomerate has issued an IPU that obligates it to make payment in full on each tranche maturity date. The conglomerate has been successfully running supply chain finance programs with its suppliers for over a year with no defaults and approximately $400M in on time payments made to date.

  • The conglomerate’s management team has a notable track record of growing revenue and generating operating cash flow sufficient to service debts and trade payments. The conglomerate has been in business for decades and has built and sustained growing long-term relationships with both customers and suppliers around the globe. In March 2021, the conglomerate saw their credit rating improve to B/B2 (stable) by two of the three leading rating agencies.

  • Raistone combines deep trade finance expertise with access to bank and non-bank capital to create a set of flexible trade finance capabilities that enable companies of all sizes to improve their cash cycle and access incremental sources of non-debt working capital. Raistone has funded over $1B in originations since inception across a diverse risk/yield mix in 12 different industries. Raistone currently maintains over $2B of investable pipeline.

Essentials

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

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

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

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 $12,137,776.63. 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%

Schedule

Payment schedule

Semi-annually

Prefunded

Target term

16 months

Structure

Tax document

1099-INT

Offering structure

BPDN

Expenses

First year expense

$100

Annual Flat Expense

$30

Slide 1 of 3
  • Yield

    Ann'l management fee

    2%

    Target ann'l net yield

    9.5%

  • Schedule

    Payment schedule

    Semi-annually

    Prefunded

    Target term

    16 months

  • 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.