[sheet: Cover]

Field	Value
Document Title	Sunk Transaction Cost Reconciliation — SkyLend Receivables Trust 2024-1
Matter Number	1009-00005
Prepared By	Calderwood & Harkness LLP
Billing Partner	Theodore Langston
Responsible Partner	Linda Osei
Client	Skybridge Fintech Ltd.
Client Address	1400 Market Street, Suite 1210, Wilmington, DE 19801
Client EIN	84-3291076
Issuing Entity	SkyLend Receivables Trust 2024-1 (EIN: 93-4201855)
Depositor	SkyLend Funding LLC (EIN: 93-4187620)
Transaction Type	Rule 144A / Regulation S Private Placement of Asset-Backed Notes
Aggregate Deal Value (Target)	$200,000,000
Transaction Status	Terminated
Termination Date	May 8, 2024
As-of Date for Reconciliation	May 8, 2024
Halcyon Deal Reference	HLC-ABS-2024-017
CUSIP Prefix (Allocated, Unused)	87165Q
Reason for Termination	Servicing-data integrity discrepancy discovered during investor due diligence; material misstatement of static-pool performance data in Preliminary Offering Memorandum dated April 5, 2024
Classification	Privileged & Confidential — Attorney Work Product

[sheet: Cost Reconciliation]

Line Item No.	Payee / Service Provider	Payee Role	Key Contact	Agreement / Basis for Fee	Original Contracted Amount	Amount Incurred / Payable	Refundable?	Payment Status	Invoice Date	Due Date	Notes
1	Halcyon Securities LLC	Lead Underwriter / Initial Purchaser	Rebecca Thornton	Preliminary Purchase Agreement §7(b) — Expense Reimbursement	$2,000,000 (underwriting discount — contingent on closing; not payable)	$387,500	No	Invoiced	2024-05-08	2024-06-07	Reimbursement of out-of-pocket expenses upon termination by issuer per §7(b) of PPA. Underwriting discount of 1.00% ($2,000,000) was contingent on closing and is not payable. No break-up fee in the PPA.
2	Meridian Credit Ratings, Inc.	Rating Agency (Primary)	Gregory Fontaine	Rating Agency Engagement Letter (executed 2024-02-28)	$185,000 (engagement) + $25,000/yr surveillance	$185,000	No	Paid	2024-02-28	2024-03-15	Non-refundable engagement fee. Meridian withdrew preliminary ratings (Aaa(sf) Class A / A2(sf) Class B) on May 1, 2024. Annual surveillance fee of $25,000 not incurred.
3	Carrollton Ratings Group LLC	Rating Agency (Secondary)	Teresa Kobayashi	Rating Agency Engagement Letter (executed 2024-02-28)	$160,000 (engagement) + $20,000/yr surveillance	$160,000	No	Paid	2024-02-28	2024-03-15	Non-refundable engagement fee. Carrollton placed expected ratings (AA+(sf) Class A / A(sf) Class B) on developing watch on April 29, 2024. Annual surveillance fee of $20,000 not incurred.
Subtotal — Rating Agency Fees	$345,000	Sum of Lines 2–3
4	Broadleaf Analytics Group LLC	Loan-Level Due Diligence Provider	Sanjay Rajan	Due Diligence Engagement Letter (executed 2024-03-25; engaged by Halcyon)	$225,000	$225,000	No	Invoiced	2024-04-30	2024-05-30	Re-underwriting of 1,500 loans (~6.5% of pool by loan count) via stratified random sample. Broadleaf discovered servicing-data discrepancy on April 22, 2024.
5	Rowland & Cross LLP	Independent Auditor	Nathan Delacroix	AUP / Comfort Letter Engagement	$275,000	$137,500	Partial	Invoiced	2024-05-08	2024-06-07	50% of contracted $275,000. Work completed through draft stage; AUP letter and comfort letter were never finalized or delivered.
6	Keymark Trust Company, N.A.	Owner Trustee	Elaine Marchetti	Trust Agreement (dated 2024-02-14)	$7,500 per annum	$3,750	No	Invoiced	2024-05-08	2024-05-31	Prorated: $7,500 × 6/12 months (Feb 14 – May 8, 2024). Owner trustee of SkyLend Receivables Trust 2024-1.
7	Atlantic Fiduciary Services, Inc.	Indenture Trustee / Paying Agent / Custodian	David Moynihan	Indenture (draft dated 2024-03-04; acceptance fee per engagement terms)	$15,000 (acceptance) + $12,500/yr trustee fee	$15,000	No	Paid	2024-03-04	2024-03-20	Non-refundable acceptance fee. Annual trustee fee of $12,500 not incurred (Indenture never fully executed).
8	Calderwood & Harkness LLP	Issuer's Counsel	Theodore Langston / Linda Osei	Engagement Letter dated 2024-01-25 (Matter No. 1009-00005)	$850,000 (estimated, capital markets phase)	$623,400	No	Billed	2024-05-08	2024-06-07	Actual fees billed through transaction termination on May 8, 2024. Partners: $1,250–$1,575/hr; Associates: $725–$925/hr. Post-termination litigation-phase fees TBD and not included.
9	Donnovan Press LLC	Printer / EDGAR Filing Agent	—	Printing / EDGAR Services Agreement	$42,000	$42,000	No	Invoiced	2024-05-08	2024-05-31	Printing of Preliminary Offering Memorandum and EDGAR preparation costs.
GRAND TOTAL — SUNK TRANSACTION COSTS	$1,779,150	Sum of Lines 1–9 (0.89% of $200,000,000 target deal value)

[sheet: Cost by Category]

Category	Amount	Percentage of Total Sunk Costs	Payee(s)
Underwriter Expense Reimbursement	$387,500	21.8%	Halcyon Securities LLC
Rating Agency Fees	$345,000	19.4%	Meridian Credit Ratings, Inc.; Carrollton Ratings Group LLC
Due Diligence Provider Fees	$225,000	12.6%	Broadleaf Analytics Group LLC
Independent Auditor Fees (Partial)	$137,500	7.7%	Rowland & Cross LLP
Trustee Fees	$18,750	1.1%	Keymark Trust Company, N.A. ($3,750); Atlantic Fiduciary Services, Inc. ($15,000)
Issuer's Counsel Fees	$623,400	35.0%	Calderwood & Harkness LLP
Printing / EDGAR	$42,000	2.4%	Donnovan Press LLC
TOTAL	$1,779,150	100.0%

[sheet: Potential Additional Exposure]

Item	Counterparty	Nature	Estimated Range — Low	Estimated Range — High	Legal Basis	Status	Notes
Halcyon Additional Damages Claim	Halcyon Securities LLC (counsel: Whitfield, Drummond & Paige LLP — Harrison Whitfield III)	Liability	$0	TBD	WDP reservation-of-rights letter dated May 10, 2024; Halcyon asserts lost revenue opportunity and reputational harm beyond §7(b) expense reimbursement	Disputed — C&H responded May 15, 2024, contesting claim; no break-up fee in PPA; PPA termination provisions limit exposure	Halcyon's $387,500 expense reimbursement is included in sunk costs above; any amounts beyond that are contested
Clearview Indemnification Claim (Recovery)	Clearview Loan Servicing, Inc. (Warren Pettigrew / Meredith Sloane)	Recovery	$1,500,000	$3,000,000	Master Servicing Agreement dated October 1, 2022, §9.02 — indemnification for losses arising from servicer's breach of data-accuracy representations	Claim being prepared by C&H (Linda Osei / Patrick Gallagher)	Estimated claim range inclusive of sunk transaction costs ($1,779,150) plus reputational damages. Root cause: ClearCore migration (June 2023) introduced payment-waterfall error — Clearview applied partial payments to principal before interest contrary to MSA §4.03. Affected ~14,600 loans (63.2% of pool). Clearview Servicing Account No. CLS-SBF-2022-0041.
Investor Notification / Remediation Costs	28 institutional investors (roadshow attendees April 15–19, 2024)	Liability	$25,000	$75,000	Securities-law risk mitigation per C&H securities-law exposure memorandum dated May 2, 2024 (Rule 10b-5, §12(a)(2), §17(a) analysis)	Pending — recommended by C&H	Preliminary Offering Memorandum dated April 5, 2024 contained incorrect static-pool data; distributed during roadshow. No securities were sold (mitigating factor). Rule 144A private placement.
C&H Post-Termination Litigation Fees	Calderwood & Harkness LLP	Liability	TBD	TBD	Engagement Letter dated 2024-01-25 — scope transitioned to litigation-phase representation	Ongoing	Post-termination fees for Clearview indemnification claim, Halcyon dispute, and securities-law exposure analysis. Not included in $623,400 capital markets phase fees.

[sheet: Transaction Summary]

Parameter	Value
Transaction	SkyLend Receivables Trust 2024-1 — Consumer Receivables Securitization
Originator / Sponsor	Skybridge Fintech Ltd. (Delaware corporation; EIN 84-3291076)
Depositor	SkyLend Funding LLC (Delaware LLC; EIN 93-4187620)
Issuer	SkyLend Receivables Trust 2024-1 (Delaware statutory trust; EIN 93-4201855; formed February 14, 2024)
PE Sponsor	Pinnacle Growth Equity Partners, LP — 62.4% equity; Series C $95M (2021); Managing Partner: Catherine Drexler; Board Rep: Marcus Yoon
Lead Underwriter	Halcyon Securities LLC (Deal Ref: HLC-ABS-2024-017; deal lead: Rebecca Thornton)
Underwriter's Counsel	Whitfield, Drummond & Paige LLP (Harrison Whitfield III)
Owner Trustee	Keymark Trust Company, N.A. (Elaine Marchetti)
Indenture Trustee	Atlantic Fiduciary Services, Inc. (David Moynihan)
Third-Party Servicer	Clearview Loan Servicing, Inc. (Meredith Sloane; Servicing Acct: CLS-SBF-2022-0041)
Due Diligence Provider	Broadleaf Analytics Group LLC (Sanjay Rajan)
Rating Agency — Primary	Meridian Credit Ratings, Inc. (Gregory Fontaine)
Rating Agency — Secondary	Carrollton Ratings Group LLC (Teresa Kobayashi)
Independent Auditor	Rowland & Cross LLP (Nathan Delacroix)
Printer / EDGAR Agent	Donnovan Press LLC
Issuer's Counsel	Calderwood & Harkness LLP (Matter No. 1009-00005)
Target Deal Size	$200,000,000
Class A Notes	$170,000,000 (85%); expected Aaa(sf)/AA+(sf); target coupon 5.45%–5.65%; WAL 2.1 years
Class B Notes	$22,000,000 (11%); expected A2(sf)/A(sf); target coupon 6.75%–7.00%; WAL 3.4 years
Residual Interest (Retained)	$8,000,000 (4%); unrated; retained by SBF via SkyLend Funding LLC
Overcollateralization Target	3.5% ($7,000,000)
Reserve Account	1.00% ($2,000,000)
Estimated Excess Spread	2.85% per annum
Receivables Pool — Loan Count	~23,100 loans

Receivables Pool — Gross Balance	$213,750,000 (pre-screening)
WAC	14.82%
WA Remaining Term	38.4 months
WA FICO at Origination	698
Max Single-Obligor Concentration	0.15% ($300,000)
Geographic Concentration Limit	No single state > 20% of pool
Servicing Fee	0.50% per annum ($1,000,000 estimated)
Cut-Off Date	March 31, 2024
Preliminary OM Date	April 5, 2024
Roadshow	April 15–19, 2024 (28 institutional investors)
Discrepancy discovery Date	April 22, 2024 (by Broadleaf Analytics)
Root Cause	Clearview ClearCore migration (June 2023) from LoanTrax — payment-waterfall error applied partial payments to principal before interest, contrary to MSA §4.03
Reported 30+ DPD (Incorrect)	3.21%
Actual 30+ DPD (Correct)	5.47% (discrepancy: +2.26 ppts; 70.4% relative increase)
Reported Cum. Net Loss — 2022 Vintage (Incorrect)	4.12%
Actual Cum. Net Loss — 2022 Vintage (Correct)	6.89% (discrepancy: +2.77 ppts; 67.2% relative increase)
Loans Affected	~14,600 (63.2% of pool)
Broadleaf Sample Size	1,500 loans (~6.5% of pool by count)
Meridian Action	Withdrew preliminary ratings on May 1, 2024
Carrollton Action	Placed expected ratings on developing watch on April 29, 2024
Halcyon Action	Suspended marketing on April 26, 2024; estimated 8–12 week remediation timeline
Board Decision	May 3, 2024 — SBF board (with Pinnacle concurrence) voted to terminate
Termination Date	May 8, 2024
WDP Reservation-of-Rights Letter	May 10, 2024
C&H Response to WDP	May 15, 2024

SBF FY2023 Revenue	$187,300,000
SBF Total Assets (12/31/23)	$1,020,000,000
SBF Gross Receivables (12/31/23)	$876,500,000
SBF Net Receivables (12/31/23)	$841,400,000
SBF FY2023 Origination Volume	~$1.4 billion
SBF Active Borrowers (12/31/23)	~312,000

[sheet: Timeline]

Date	Event	Responsible Party / Counterparty	Cost Impact
2022-10-01	Master Servicing Agreement executed between SBF and Clearview Loan Servicing, Inc.	SBF / Clearview	—
2023-06-01	Clearview system migration from LoanTrax to ClearCore — payment-waterfall error introduced	Clearview	Root cause of data discrepancy
2024-01-25	C&H Engagement Letter executed; Matter No. 1009-00005 opened	Calderwood & Harkness LLP	Fee clock starts ($623,400 ultimately billed)
2024-01-30	SkyLend Funding LLC formed (Depositor)	SBF	—
2024-02-14	SkyLend Receivables Trust 2024-1 formed; Trust Agreement with Keymark	SkyLend Funding LLC / Keymark	Keymark fee begins accruing ($3,750 prorated)
2024-02-20	Halcyon underwriting engagement letter signed	Halcyon Securities LLC	—
2024-02-28	Rating-agency engagement letters executed (Meridian and Carrollton)	Meridian / Carrollton	Engagement fees incurred: $185,000 + $160,000 = $345,000
2024-03-04	Draft Indenture circulated; AFS acceptance fee paid	SRT 2024-1 / AFS	AFS acceptance fee $15,000
2024-03-11	Draft RPA and Sale & Servicing Agreement circulated	C&H	—
2024-03-18	Clearview sub-servicing agreement amendment executed (Amendment No. 1 to MSA)	SBF / Clearview	—
2024-03-25	Broadleaf Analytics engaged by Halcyon for loan-level due diligence	Halcyon / Broadleaf	DD fees: $225,000
2024-03-31	Cut-off date for receivables pool	—	—
2024-04-05	Preliminary Offering Memorandum distributed (contains incorrect static-pool data)	SBF / Halcyon	Donnovan printing/EDGAR costs: $42,000
2024-04-08	Rating-agency presentations to Meridian (Gregory Fontaine) and Carrollton (Teresa Kobayashi)	C&H / SBF	—
2024-04-10	Broadleaf commences loan-tape sampling and re-underwriting (1,500 loans)	Broadleaf	—
2024-04-15	Investor roadshow begins (28 institutional investors)	Halcyon / SBF	—
2024-04-19	Investor roadshow concludes	Halcyon / SBF	—
2024-04-22	Broadleaf discovers servicing-data discrepancy; notifies Halcyon	Broadleaf / Halcyon	Trigger event for termination chain
2024-04-23	Halcyon notifies SBF (via C&H) of Broadleaf findings	Halcyon → C&H → SBF	—
2024-04-24	SBF internal investigation commences; Clearview issues preliminary response	SBF / Clearview	—
2024-04-26	Halcyon suspends marketing; delivers force-majeure / material-change notice	Halcyon	—
2024-04-29	Carrollton places expected ratings on developing watch	Carrollton	—
2024-05-01	Meridian withdraws preliminary ratings	Meridian	—
2024-05-03	SBF board meeting; Pinnacle and SBF management agree to terminate transaction	SBF Board / Pinnacle	Decision to crystallize sunk costs

2024-05-06	C&H delivers termination-and-wind-down memorandum to SBF	C&H	—
2024-05-08	Transaction formally terminated; termination notice sent to Halcyon and service providers; R&C partial fee invoiced ($137,500)	SBF / C&H	Halcyon expense reimbursement triggered: $387,500; R&C partial fees: $137,500
2024-05-10	WDP reservation-of-rights letter on behalf of Halcyon (claims beyond $387,500)	WDP / Halcyon	Potential additional exposure (amount TBD)
2024-05-15	C&H response to WDP reservation-of-rights letter, contesting additional damages claim	C&H / SBF	—

[sheet: Cover]
Field | Value
Document Title | Sunk Transaction Cost Reconciliation — SkyLend Receivables Trust 2024-1
Matter Number | 1009-00005
Prepared By | Calderwood & Harkness LLP
Billing Partner | Theodore Langston
Responsible Partner | Linda Osei
Client | Skybridge Fintech Ltd.
Client Address | 1400 Market Street, Suite 1210, Wilmington, DE 19801
Client EIN | 84-3291076
Issuing Entity | SkyLend Receivables Trust 2024-1 (EIN: 93-4201855)
Depositor | SkyLend Funding LLC (EIN: 93-4187620)
Transaction Type | Rule 144A / Regulation S Private Placement of Asset-Backed Notes
Aggregate Deal Value (Target) | $200,000,000
Transaction Status | Terminated
Termination Date | May 8, 2024
As-of Date for Reconciliation | May 8, 2024
Halcyon Deal Reference | HLC-ABS-2024-017
CUSIP Prefix (Allocated, Unused) | 87165Q
Reason for Termination | Servicing-data integrity discrepancy discovered during investor due diligence; material misstatement of static-pool performance data in Preliminary Offering Memorandum dated April 5, 2024
Classification | Privileged & Confidential — Attorney Work Product
[sheet: Cost Reconciliation]
Line Item No. | Payee / Service Provider | Payee Role | Key Contact | Agreement / Basis for Fee | Original Contracted Amount | Amount Incurred / Payable | Refundable? | Payment Status | Invoice Date | Due Date | Notes
1 | Halcyon Securities LLC | Lead Underwriter / Initial Purchaser | Rebecca Thornton | Preliminary Purchase Agreement §7(b) — Expense Reimbursement | $2,000,000 (underwriting discount — contingent on closing; not payable) | $387,500 | No | Invoiced | 2024-05-08 | 2024-06-07 | Reimbursement of out-of-pocket expenses upon termination by issuer per §7(b) of PPA. Underwriting discount of 1.00% ($2,000,000) was contingent on closing and is not payable. No break-up fee in the PPA.
2 | Meridian Credit Ratings, Inc. | Rating Agency (Primary) | Gregory Fontaine | Rating Agency Engagement Letter (executed 2024-02-28) | $185,000 (engagement) + $25,000/yr surveillance | $185,000 | No | Paid | 2024-02-28 | 2024-03-15 | Non-refundable engagement fee. Meridian withdrew preliminary ratings (Aaa(sf) Class A / A2(sf) Class B) on May 1, 2024. Annual surveillance fee of $25,000 not incurred.
3 | Carrollton Ratings Group LLC | Rating Agency (Secondary) | Teresa Kobayashi | Rating Agency Engagement Letter (executed 2024-02-28) | $160,000 (engagement) + $20,000/yr surveillance | $160,000 | No | Paid | 2024-02-28 | 2024-03-15 | Non-refundable engagement fee. Carrollton placed expected ratings (AA+(sf) Class A / A(sf) Class B) on developing watch on April 29, 2024. Annual surveillance fee of $20,000 not incurred.
Subtotal — Rating Agency Fees | $345,000 | Sum of Lines 2–3
4 | Broadleaf Analytics Group LLC | Loan-Level Due Diligence Provider | Sanjay Rajan | Due Diligence Engagement Letter (executed 2024-03-25; engaged by Halcyon) | $225,000 | $225,000 | No | Invoiced | 2024-04-30 | 2024-05-30 | Re-underwriting of 1,500 loans (~6.5% of pool by loan count) via stratified random sample. Broadleaf discovered servicing-data discrepancy on April 22, 2024.
5 | Rowland & Cross LLP | Independent Auditor | Nathan Delacroix | AUP / Comfort Letter Engagement | $275,000 | $137,500 | Partial | Invoiced | 2024-05-08 | 2024-06-07 | 50% of contracted $275,000. Work completed through draft stage; AUP letter and comfort letter were never finalized or delivered.
6 | Keymark Trust Company, N.A. | Owner Trustee | Elaine Marchetti | Trust Agreement (dated 2024-02-14) | $7,500 per annum | $3,750 | No | Invoiced | 2024-05-08 | 2024-05-31 | Prorated: $7,500 × 6/12 months (Feb 14 – May 8, 2024). Owner trustee of SkyLend Receivables Trust 2024-1.
7 | Atlantic Fiduciary Services, Inc. | Indenture Trustee / Paying Agent / Custodian | David Moynihan | Indenture (draft dated 2024-03-04; acceptance fee per engagement terms) | $15,000 (acceptance) + $12,500/yr trustee fee | $15,000 | No | Paid | 2024-03-04 | 2024-03-20 | Non-refundable acceptance fee. Annual trustee fee of $12,500 not incurred (Indenture never fully executed).
8 | Calderwood & Harkness LLP | Issuer's Counsel | Theodore Langston / Linda Osei | Engagement Letter dated 2024-01-25 (Matter No. 1009-00005) | $850,000 (estimated, capital markets phase) | $623,400 | No | Billed | 2024-05-08 | 2024-06-07 | Actual fees billed through transaction termination on May 8, 2024. Partners: $1,250–$1,575/hr; Associates: $725–$925/hr. Post-termination litigation-phase fees TBD and not included.
9 | Donnovan Press LLC | Printer / EDGAR Filing Agent | — | Printing / EDGAR Services Agreement | $42,000 | $42,000 | No | Invoiced | 2024-05-08 | 2024-05-31 | Printing of Preliminary Offering Memorandum and EDGAR preparation costs.
GRAND TOTAL — SUNK TRANSACTION COSTS | $1,779,150 | Sum of Lines 1–9 (0.89% of $200,000,000 target deal value)
[sheet: Cost by Category]
Category | Amount | Percentage of Total Sunk Costs | Payee(s)
Underwriter Expense Reimbursement | $387,500 | 21.8% | Halcyon Securities LLC
Rating Agency Fees | $345,000 | 19.4% | Meridian Credit Ratings, Inc.; Carrollton Ratings Group LLC
Due Diligence Provider Fees | $225,000 | 12.6% | Broadleaf Analytics Group LLC
Independent Auditor Fees (Partial) | $137,500 | 7.7% | Rowland & Cross LLP
Trustee Fees | $18,750 | 1.1% | Keymark Trust Company, N.A. ($3,750); Atlantic Fiduciary Services, Inc. ($15,000)
Issuer's Counsel Fees | $623,400 | 35.0% | Calderwood & Harkness LLP
Printing / EDGAR | $42,000 | 2.4% | Donnovan Press LLC
TOTAL | $1,779,150 | 100.0%
[sheet: Potential Additional Exposure]
Item | Counterparty | Nature | Estimated Range — Low | Estimated Range — High | Legal Basis | Status | Notes
Halcyon Additional Damages Claim | Halcyon Securities LLC (counsel: Whitfield, Drummond & Paige LLP — Harrison Whitfield III) | Liability | $0 | TBD | WDP reservation-of-rights letter dated May 10, 2024; Halcyon asserts lost revenue opportunity and reputational harm beyond §7(b) expense reimbursement | Disputed — C&H responded May 15, 2024, contesting claim; no break-up fee in PPA; PPA termination provisions limit exposure | Halcyon's $387,500 expense reimbursement is included in sunk costs above; any amounts beyond that are contested
Clearview Indemnification Claim (Recovery) | Clearview Loan Servicing, Inc. (Warren Pettigrew / Meredith Sloane) | Recovery | $1,500,000 | $3,000,000 | Master Servicing Agreement dated October 1, 2022, §9.02 — indemnification for losses arising from servicer's breach of data-accuracy representations | Claim being prepared by C&H (Linda Osei / Patrick Gallagher) | Estimated claim range inclusive of sunk transaction costs ($1,779,150) plus reputational damages. Root cause: ClearCore migration (June 2023) introduced payment-waterfall error — Clearview applied partial payments to principal before interest contrary to MSA §4.03. Affected ~14,600 loans (63.2% of pool). Clearview Servicing Account No. CLS-SBF-2022-0041.
Investor Notification / Remediation Costs | 28 institutional investors (roadshow attendees April 15–19, 2024) | Liability | $25,000 | $75,000 | Securities-law risk mitigation per C&H securities-law exposure memorandum dated May 2, 2024 (Rule 10b-5, §12(a)(2), §17(a) analysis) | Pending — recommended by C&H | Preliminary Offering Memorandum dated April 5, 2024 contained incorrect static-pool data; distributed during roadshow. No securities were sold (mitigating factor). Rule 144A private placement.
C&H Post-Termination Litigation Fees | Calderwood & Harkness LLP | Liability | TBD | TBD | Engagement Letter dated 2024-01-25 — scope transitioned to litigation-phase representation | Ongoing | Post-termination fees for Clearview indemnification claim, Halcyon dispute, and securities-law exposure analysis. Not included in $623,400 capital markets phase fees.
[sheet: Transaction Summary]
Parameter | Value
Transaction | SkyLend Receivables Trust 2024-1 — Consumer Receivables Securitization
Originator / Sponsor | Skybridge Fintech Ltd. (Delaware corporation; EIN 84-3291076)
Depositor | SkyLend Funding LLC (Delaware LLC; EIN 93-4187620)
Issuer | SkyLend Receivables Trust 2024-1 (Delaware statutory trust; EIN 93-4201855; formed February 14, 2024)
PE Sponsor | Pinnacle Growth Equity Partners, LP — 62.4% equity; Series C $95M (2021); Managing Partner: Catherine Drexler; Board Rep: Marcus Yoon
Lead Underwriter | Halcyon Securities LLC (Deal Ref: HLC-ABS-2024-017; deal lead: Rebecca Thornton)
Underwriter's Counsel | Whitfield, Drummond & Paige LLP (Harrison Whitfield III)
Owner Trustee | Keymark Trust Company, N.A. (Elaine Marchetti)
Indenture Trustee | Atlantic Fiduciary Services, Inc. (David Moynihan)
Third-Party Servicer | Clearview Loan Servicing, Inc. (Meredith Sloane; Servicing Acct: CLS-SBF-2022-0041)
Due Diligence Provider | Broadleaf Analytics Group LLC (Sanjay Rajan)
Rating Agency — Primary | Meridian Credit Ratings, Inc. (Gregory Fontaine)
Rating Agency — Secondary | Carrollton Ratings Group LLC (Teresa Kobayashi)
Independent Auditor | Rowland & Cross LLP (Nathan Delacroix)
Printer / EDGAR Agent | Donnovan Press LLC
Issuer's Counsel | Calderwood & Harkness LLP (Matter No. 1009-00005)
Target Deal Size | $200,000,000
Class A Notes | $170,000,000 (85%); expected Aaa(sf)/AA+(sf); target coupon 5.45%–5.65%; WAL 2.1 years
Class B Notes | $22,000,000 (11%); expected A2(sf)/A(sf); target coupon 6.75%–7.00%; WAL 3.4 years
Residual Interest (Retained) | $8,000,000 (4%); unrated; retained by SBF via SkyLend Funding LLC
Overcollateralization Target | 3.5% ($7,000,000)
Reserve Account | 1.00% ($2,000,000)
Estimated Excess Spread | 2.85% per annum
Receivables Pool — Loan Count | ~23,100 loans
Receivables Pool — Gross Balance | $213,750,000 (pre-screening)
WAC | 14.82%
WA Remaining Term | 38.4 months
WA FICO at Origination | 698
Max Single-Obligor Concentration | 0.15% ($300,000)
Geographic Concentration Limit | No single state > 20% of pool
Servicing Fee | 0.50% per annum ($1,000,000 estimated)
Cut-Off Date | March 31, 2024
Preliminary OM Date | April 5, 2024
Roadshow | April 15–19, 2024 (28 institutional investors)
Discrepancy discovery Date | April 22, 2024 (by Broadleaf Analytics)
Root Cause | Clearview ClearCore migration (June 2023) from LoanTrax — payment-waterfall error applied partial payments to principal before interest, contrary to MSA §4.03
Reported 30+ DPD (Incorrect) | 3.21%
Actual 30+ DPD (Correct) | 5.47% (discrepancy: +2.26 ppts; 70.4% relative increase)
Reported Cum. Net Loss — 2022 Vintage (Incorrect) | 4.12%
Actual Cum. Net Loss — 2022 Vintage (Correct) | 6.89% (discrepancy: +2.77 ppts; 67.2% relative increase)
Loans Affected | ~14,600 (63.2% of pool)
Broadleaf Sample Size | 1,500 loans (~6.5% of pool by count)
Meridian Action | Withdrew preliminary ratings on May 1, 2024
Carrollton Action | Placed expected ratings on developing watch on April 29, 2024
Halcyon Action | Suspended marketing on April 26, 2024; estimated 8–12 week remediation timeline
Board Decision | May 3, 2024 — SBF board (with Pinnacle concurrence) voted to terminate
Termination Date | May 8, 2024
WDP Reservation-of-Rights Letter | May 10, 2024
C&H Response to WDP | May 15, 2024
SBF FY2023 Revenue | $187,300,000
SBF Total Assets (12/31/23) | $1,020,000,000
SBF Gross Receivables (12/31/23) | $876,500,000
SBF Net Receivables (12/31/23) | $841,400,000
SBF FY2023 Origination Volume | ~$1.4 billion
SBF Active Borrowers (12/31/23) | ~312,000
[sheet: Timeline]
Date | Event | Responsible Party / Counterparty | Cost Impact
2022-10-01 | Master Servicing Agreement executed between SBF and Clearview Loan Servicing, Inc. | SBF / Clearview | —
2023-06-01 | Clearview system migration from LoanTrax to ClearCore — payment-waterfall error introduced | Clearview | Root cause of data discrepancy
2024-01-25 | C&H Engagement Letter executed; Matter No. 1009-00005 opened | Calderwood & Harkness LLP | Fee clock starts ($623,400 ultimately billed)
2024-01-30 | SkyLend Funding LLC formed (Depositor) | SBF | —
2024-02-14 | SkyLend Receivables Trust 2024-1 formed; Trust Agreement with Keymark | SkyLend Funding LLC / Keymark | Keymark fee begins accruing ($3,750 prorated)
2024-02-20 | Halcyon underwriting engagement letter signed | Halcyon Securities LLC | —
2024-02-28 | Rating-agency engagement letters executed (Meridian and Carrollton) | Meridian / Carrollton | Engagement fees incurred: $185,000 + $160,000 = $345,000
2024-03-04 | Draft Indenture circulated; AFS acceptance fee paid | SRT 2024-1 / AFS | AFS acceptance fee $15,000
2024-03-11 | Draft RPA and Sale & Servicing Agreement circulated | C&H | —
2024-03-18 | Clearview sub-servicing agreement amendment executed (Amendment No. 1 to MSA) | SBF / Clearview | —
2024-03-25 | Broadleaf Analytics engaged by Halcyon for loan-level due diligence | Halcyon / Broadleaf | DD fees: $225,000
2024-03-31 | Cut-off date for receivables pool | — | —
2024-04-05 | Preliminary Offering Memorandum distributed (contains incorrect static-pool data) | SBF / Halcyon | Donnovan printing/EDGAR costs: $42,000
2024-04-08 | Rating-agency presentations to Meridian (Gregory Fontaine) and Carrollton (Teresa Kobayashi) | C&H / SBF | —
2024-04-10 | Broadleaf commences loan-tape sampling and re-underwriting (1,500 loans) | Broadleaf | —
2024-04-15 | Investor roadshow begins (28 institutional investors) | Halcyon / SBF | —
2024-04-19 | Investor roadshow concludes | Halcyon / SBF | —
2024-04-22 | Broadleaf discovers servicing-data discrepancy; notifies Halcyon | Broadleaf / Halcyon | Trigger event for termination chain
2024-04-23 | Halcyon notifies SBF (via C&H) of Broadleaf findings | Halcyon → C&H → SBF | —
2024-04-24 | SBF internal investigation commences; Clearview issues preliminary response | SBF / Clearview | —
2024-04-26 | Halcyon suspends marketing; delivers force-majeure / material-change notice | Halcyon | —
2024-04-29 | Carrollton places expected ratings on developing watch | Carrollton | —
2024-05-01 | Meridian withdraws preliminary ratings | Meridian | —
2024-05-03 | SBF board meeting; Pinnacle and SBF management agree to terminate transaction | SBF Board / Pinnacle | Decision to crystallize sunk costs
2024-05-06 | C&H delivers termination-and-wind-down memorandum to SBF | C&H | —
2024-05-08 | Transaction formally terminated; termination notice sent to Halcyon and service providers; R&C partial fee invoiced ($137,500) | SBF / C&H | Halcyon expense reimbursement triggered: $387,500; R&C partial fees: $137,500
2024-05-10 | WDP reservation-of-rights letter on behalf of Halcyon (claims beyond $387,500) | WDP / Halcyon | Potential additional exposure (amount TBD)
2024-05-15 | C&H response to WDP reservation-of-rights letter, contesting additional damages claim | C&H / SBF | —

[sheet: Cover]

Record

Parties

Dates

Amounts