*Q2 2022 GigPool Update *
GigPool Quarterly Activity Overview
Note that this is the first official update that we are distributing publicly; we plan on distributing a high level update on the forums, on a quarterly basis going forward, with a more detailed report shared directly to investors. We are also working with Willa in establishing a monthly cadence of remittance reports on outstanding notes for investors.
After discussions with the Centrifuge team, we will adjust the discount rate that the Tinlake platform uses to display forward projected returns on the TIN tranche to be slightly lower. This should have no affect on the actual cash returns, as the Tinlake discount rate has no bearing on the rate at which we lend to our borrowers, nor the rate that we repay on the NFT Assets. This would result in a higher expected return displayed for the TIN tranche.
There were minor changes to our Executive Summary that were recommended by our legal counsel that do not affect the structure of how we interact with investors.
Willa 006a and 006b notes had come due this quarter. These notes were represented by NFT Assets 18, 19, 20, 21, 22.
The Willa 006a and 006b notes were refinanced by the Willa 007a and 007b notes, which are currently represented by NFT Assets 23, 24, 25, 26. The Willa 007a and 007b notes are expected to come due in September.
END-Labs is in discussions to enter into a partnership that would potentially add another Asset Originator onto the GigPool platform. We anticipate further clarity on this partnership by mid-September.
Note Collateral Performance:
For the Willa 006a and 006b notes, the notes were cross collateralized (that is, the notes shared the same pool of invoice receivables). We see that given our 80% advance rate on the funded balances, there were enough cash flows generated from paid invoices to cover a significant portion of the note balance, but the company still had to rely on the 50% cash reserve to cover about 3+% of principal and the interest coverage.
Given Willa’s short term and medium term strategic roadmap as communicated to us by Willa’s management, we anticipate that there will eventually be less of a reliance on the cash reserve to meet principal and interest coverage; but for the time being, we will maintained the same cash reserve requirement levels for the Willa 007a and 007b notes and will continue monitoring and providing feedback on Willa’s credit underwriting approach, asset performance, and operational capacity.
