Accepting $5,000 - $500,000 investments
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Accepting $5,000 - $500,000 investments
Yieldstreet is pleased to offer a short-term note, with 10% annualized target interest, dependent on an Irrevocable Payment Undertaking (“IPU”) issued by a conglomerate of leading manufacturers and distributors for the global consumer goods industry. Yieldstreet has entered into a participation with Raistone Capital (“Raistone”) to be part of a supply-chain financing syndicate of nearly $100 million. Yieldstreet funded approximately $23.5 million alongside several other institutional investors. Raistone’s client (let’s call the client “Mango”) is a multi-billion dollar revenue and 10%+ EBITDA margin conglomerate business and is rated B-/B3 (stable) by one of the three leading rating agencies. Mango has entered into a deal with its suppliers that allows Raistone (and Yieldstreet/syndicate through the participation) to purchase (at a discount) their outstanding receivables due from Mango. Mango then provides Raistone with an IPU, whereby Mango will unconditionally pay the full amount of the receivables on the maturity date, which is February 3, 2021. In summary, through this program, the suppliers get paid right away, Mango gets extended payment terms (181 days), and Yieldstreet investors earn a 10% annualized target interest rate for a short-term, B-/B3 (stable) credit risk.
Please review the Series Note Supplement for greater detail on supply chain financing, this particular investment opportunity and the risks thereof. The above is intended to simply introduce the opportunity. There is more detailed information available in the Series Note Supplement.
Raistone will service and administer the financing on behalf of Yieldstreet and the other participants that comprise this supply chain financing facility. Yieldstreet investors are scheduled to receive one payment, at maturity, comprised of their investment plus their interest at an annualized target rate of 10%.
• Yieldstreet investors will receive a single payment of their principal and interest by February 3, 2021. Interest will be calculated at an annualized target rate of 10.0%, net of Yieldstreet’s management and origination fees.
• Mango has provided an irrevocable payment undertaking (IPU) which obligates Mango to make payment in full on the maturity date.
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Do you like this offering?
Please refer to the Series Note Supplement for more details about this offering.
What is the collateral underlying the transaction?
The primary source of repayment is through Mango’s ability to generate cash flow to pay their trade payables. By issuing an irrevocable payment undertaking (“IPU”), Mango is obligated to pay the full amount of the invoices without any reduction, setoff, or counterclaim on a date certain that is 181 days from funding. As a supplementary protection, Raistone has filed liens, where applicable, on approximately 500 receivables from Mango’s suppliers that are being paid early in this program. Total gross amount of the payments due under the IPU is $24.9M, while the discounted amount paid to suppliers was $23.4M. Ultimately, this is how the investor’s income is derived.
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.
How do I get paid?
Yieldstreet investors are scheduled to receive a single principal and interest payment at an annualized target interest rate of 10%, net of Yieldstreet’s management and origination fees, on or before February 3, 2021.
Other resources in addition to the Series Note Supplement.
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.
This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS RAIS PBC I LLC ("Issuer"). The Offering is made only by means of the Investment Memorandum relating to the Offering (the "Offering Document"). 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 Document, or as incorporated in the Offering Document 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 Document or in any marketing or sales literature issued by the Issuer or Yieldstreet Management, LLC, as adviser thereto, and referred to in the Offering Document, and, if given or made, such information or representations must not be relied upon. All investors must read the Offering Document in its 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.