Private Credit

Supply Chain Financing I.C

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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

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.

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 Supply Chain Financing I series, which have either fully repaid or continues to perform in line with expectations.

Yield

Yieldstreet fee

1%

Target net yield

9%

Interest Type

Actual 360

Schedule

Payment schedule

At Maturity

Prefunded

Maturity

Date

Maturity

July 28, 2021

Structure

Tax document

1099-INT

Offering structure

Expenses

First year expense

$35

Annual flat expense

$0

Slide 1 of 3
  • Yield

    Yieldstreet fee

    1%

    Target net yield

    9%

    Interest Type

    Actual 360

  • Schedule

    Payment schedule

    At Maturity

    Prefunded

    Maturity

    Date

    Maturity

    July 28, 2021

  • Structure

    Tax document

    1099-INT

    Offering structure

    Expenses

    First year expense

    $35

    Annual flat expense

    $0

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Essentials

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

Capital Structure

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.

Cash Flow

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.

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 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.

Highlights

Experienced Originator
Conglomerate Payment Obligation
Approved Supplier Invoices
Experienced Conglomerate
  • 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 maintains over $2B of investable pipeline and its portfolio consists of a diverse risk/yield mix across 12 different industries.

  • The conglomerate has issued an IPU that obligates it to make payment in full on the maturity date of 7/28/2021. 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.

  • All invoices were approved by the conglomerate and Raistone in order to be eligible for the supply chain financing. Raistone then acquired the approved accounts receivable from the suppliers at a discounted purchase price and the conglomerate agreed to pay the invoices in 181 days from the date of purchase by Raistone.

  • The conglomerate’s management team has a proven 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. The conglomerate’s most recent rating was B-/B3 (stable) by one of the three leading rating agencies.

Resources

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.