Investing in the Senior Unsecured Notes, Series 2026 involves significant risk. The following is a summary of material risks. The complete risk factors are set forth in the Private Placement Memorandum and must be reviewed carefully.
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The following risk factors do not represent a complete list of risks associated with this investment. Additional risks and uncertainties not currently known, or that are currently deemed immaterial, may also impair the Issuer's ability to make interest payments or return principal. An investment in these notes could result in the complete loss of your principal. Do not invest funds you cannot afford to lose.
These are unsecured notes. If Allencrest Credit Funding LLC is unable to meet its obligations, investors may lose some or all of their invested principal. There is no collateral securing these notes.
Cash interest payments are dependent on the Issuer's liquidity and cash flow from operations and affiliated entities. There is no guarantee that quarterly cash interest payments will be made on time or in full.
PIK interest accrues and compounds without a cash payment. The principal balance grows as PIK interest is added, which increases the amount owed by the Issuer at maturity.
These notes are senior unsecured obligations. In a liquidation or bankruptcy of the Issuer, holders of secured debt would be paid before note holders. There is no assurance that note holders would recover any principal in a distressed scenario.
Allencrest Credit Funding LLC is a recently formed entity. It has a limited operating history. There can be no assurance that the Issuer will generate sufficient revenue to service its obligations.
The Issuer's ability to service the notes is dependent in part on the financial performance of affiliated entities within the Allencrest Group. Poor performance by those entities could impair the Issuer's repayment ability.
Proceeds may be deployed in the hotel and hospitality sector. This sector is subject to cyclicality, travel disruptions, labor shortages, competitive pressures, and other industry-specific risks.
There is no public market for these notes and none is expected to develop. Investors should be prepared to hold these notes until maturity and should not invest funds they may need to access before maturity.
These notes have not been registered under the Securities Act. Transfers are restricted and may require Issuer consent and satisfaction of applicable securities law requirements.
This offering relies on exemptions from registration. Failure to maintain eligibility for these exemptions could result in rescission liability or regulatory action against the Issuer.
The tax treatment of interest income including PIK interest may be complex. Investors should consult their own tax advisors regarding the federal, state, and local tax consequences of investing in these notes.
This risk factor summary does not represent a complete list of risks. Prospective investors must review the complete Private Placement Memorandum, which contains a comprehensive set of risk factors, before making any investment decision. This offering is open only to verified accredited investors. Consult your legal, financial, and tax advisors before investing.