Private Credit

Supply Chain Financing I.K

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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 $158M to this supply chain financing program and the borrower has repaid over $56M 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 6 months. Investors are expected to earn interest at an annualized target yield of 8.5%. Principal and interest is expected to be repaid at maturity.

Highlights

Notable track record
Approved supplier invoices
Conglomerate payment obligation
Experienced conglomerate
Experienced originator
  • Raistone has now provided over $400M to the conglomerate via this facility, ~$158M of which has been funded by Yieldstreet since July 2020, with more than $56M in principal and interest repayments. This offering represents the 15th time Yieldstreet has provided funds to the conglomerate.

  • 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 by the maturity date of 2/2/2022. The conglomerate has been successfully running supply chain finance programs with its suppliers, with no defaults and approximately $400M in 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 to the Series Note Supplement in the docs section for more details about this offering.

Capital structure

Where does Yieldstreet lie in terms of priority?

Yieldstreet has funded $7,012,531.08 of approved supplier invoices. Repayments are unsecured and will be made out of cash flow from the conglomerate in their ordinary course of business like other trade payables.

Cash flow

How do I get paid?

The offering has a term of 6 months. Investors can expect to receive a single principal and interest payment by maturity, net of all fees, including any excess spread.

Any excess spread earned on the participation (calculated as the difference between the total proceeds Yieldstreet receives on the facility and the target net return plus the management fee) will be retained by Yieldstreet. Please see the Series Note Supplement for further details.

Assets

What is the repayment obligation underlying the transaction?

In exchange for payment ahead of schedule, the suppliers offer a discount to Raistone who pays the invoices on behalf of the conglomerate. Raistone then offers the conglomerate extended payment terms, and in exchange for additional time the conglomerate pays Raistone the non-discounted invoice amount.

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 shipment 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 February 2, 2022. The $7,426,498.83 payment obligation of the conglomerate is unsecured.

This amount will cover principal, interest and fees.

Returns & management fees

Management fee

1.5%

Target net ann'l yield

8.5%

Schedule

Payment schedule

At maturity

Interest type

Actual 360

Prefunded

Term

Date

Target term

Feb 2, 2022

Structure

Tax document

1099-INT

Offering structure

BPDN

Expenses

First year expense

$50

Annual flat expense

$0

Slide 1 of 3
  • Returns & management fees

    Management fee

    1.5%

    Target net ann'l yield

    8.5%

  • Schedule

    Payment schedule

    At maturity

    Interest type

    Actual 360

    Prefunded

    Term

    Date

    Target term

    Feb 2, 2022

  • Structure

    Tax document

    1099-INT

    Offering structure

    BPDN

    Expenses

    First year expense

    $50

    Annual flat expense

    $0

Docs

Content

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.