This is an opportunity to invest in the same supply chain financing program with the same multi-billion dollar conglomerate offered to investors in Supply Chain Financing I series, which have either repaid or continues to perform in line with expectations. The conglomerate seeking additional financing consists of leading manufacturers and distributors to the global consumer goods industry. The conglomerate is a multi-billion dollar revenue and 10%+ EBITDA margin business and is rated B-/B3 (stable) by one of the three leading rating agencies.
The expansion of the conglomerate’s supply chain financing facility is expected to enable them to support revenue growth and fill orders on time. Yieldstreet’s participation in the transaction has enabled more than 30 of the conglomerate’s suppliers to get paid immediately. The conglomerate has an obligation to pay the full amount of the invoices on the maturity date of July 28, 2021. Investors can expect to earn a target 9% annualized interest rate for this short-term investment.
The originator of this financing opportunity, Raistone Capital, has commited up to ~$155M for this supply chain financing program of which ~$40.8M has been funded by Yieldstreet’s participation, with the remaining amount funded by participations from several institutional investors. Since inception of this supply chain financing program, approximately $400M has been paid to suppliers and repaid by the conglomerate in full and on time. Yieldstreet’s earlier participation in this program continues to perform in line with expectations.
Principal and interest are scheduled to be paid to Yieldstreet investors at maturity.
• 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 Supply Chain Financing I series, which have either fully repaid or continues to perform in line with expectations.
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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 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 and the revolving credit lender has a lien on all of the conglomerate’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 9% at maturity.
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 on July 28, 2021. The repayment obligation is unsecured.
Total gross amount of the payments due to Yieldstreet under the IPU is $14,689,931.95. This amount will 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.