MSP Recovery Announces Strategic Term Sheet Providing Prospective Liquidity and Working Capital Aimed at Driving Future Growth
MSP Recovery (NASDAQ: MSPR) has entered into a non-binding term sheet for a secured term loan facility of up to $55 million with an undisclosed investor. The facility consists of two tranches: Tranche A up to $10 million and Tranche B up to $45 million, with a 36-month maturity and potential two-year extension.
The deal includes warrant issuance to the lender, potentially reaching 46% of fully diluted equity if fully drawn. The facility will be secured by first-priority interest in the company's assets and includes provisions for appointing a Chief Restructuring Officer and establishing a voting trust arrangement for certain shareholders.
MSP Recovery (NASDAQ: MSPR) ha sottoscritto un term sheet non vincolante per una linea di finanziamento garantita fino a 55 milioni di dollari con un investitore non divulgato. Il finanziamento è suddiviso in due tranche: Tranche A fino a 10 milioni di dollari e Tranche B fino a 45 milioni di dollari, con scadenza a 36 mesi e possibilità di estensione di due anni.
L’accordo prevede l’emissione di warrant a favore del finanziatore, che potrebbero arrivare fino al 46% del capitale totalmente diluito se la linea fosse completamente utilizzata. La struttura sarà garantita da un interesse di prima priorità sugli asset della società e include clausole per la nomina di un Chief Restructuring Officer e per l’istituzione di un voting trust per alcuni azionisti.
MSP Recovery (NASDAQ: MSPR) ha firmado un term sheet no vinculante para una línea de préstamo garantizado de hasta 55 millones de dólares con un inversor no revelado. La facilidad se compone de dos tramos: Tramo A hasta 10 millones de dólares y Tramo B hasta 45 millones de dólares, con vencimiento a 36 meses y posibilidad de prórroga por dos años.
El acuerdo contempla la emisión de warrants al prestamista, que podrían alcanzar el 46% del capital totalmente diluido si se utilizara por completo la línea. La facilidad estará garantizada por un derecho de primera prioridad sobre los activos de la compañía e incluye disposiciones para nombrar a un Chief Restructuring Officer y para establecer un voting trust para ciertos accionistas.
MSP Recovery (NASDAQ: MSPR)가 비공개 투자자와 최대 5,500만 달러의 담보부 기간 대출에 대한 구속력 없는 조건표에 서명했습니다. 해당 대출은 두 개의 트랜치로 구성됩니다: 트랜치 A 최대 1,000만 달러 및 트랜치 B 최대 4,500만 달러로, 만기는 36개월이며 2년 연장 가능성이 있습니다.
거래에는 대출자에게 워런트 발행이 포함되며, 대출이 전액 집행될 경우 완전 희석 기준 지분의 46%에 이를 수 있습니다. 이 시설은 회사 자산에 대한 선순위 담보로 보호되며, Chief Restructuring Officer 임명 및 특정 주주에 대한 보팅 트러스트(voting trust) 설치 조항을 포함합니다.
MSP Recovery (NASDAQ: MSPR) a conclu une term sheet non contraignante pour une facilité de prêt garantie pouvant atteindre 55 millions de dollars avec un investisseur non divulgué. La facilité se compose de deux tranches : Tranche A jusqu’à 10 millions de dollars et Tranche B jusqu’à 45 millions de dollars, avec une échéance de 36 mois et une possible prolongation de deux ans.
L’accord prévoit l’émission de warrants au prêteur, pouvant représenter jusqu’à 46 % du capital entièrement dilué si la facilité était entièrement utilisée. La facilité sera garantie par une priorité de sûreté sur les actifs de la société et inclut des dispositions pour la nomination d’un Chief Restructuring Officer et la création d’un voting trust pour certains actionnaires.
MSP Recovery (NASDAQ: MSPR) hat ein unverbindliches Term Sheet für eine besicherte Kreditfazilität von bis zu 55 Millionen US-Dollar mit einem nicht genannten Investor abgeschlossen. Die Fazilität besteht aus zwei Tranchen: Tranche A bis zu 10 Millionen US-Dollar und Tranche B bis zu 45 Millionen US-Dollar, mit einer Laufzeit von 36 Monaten und einer möglichen Verlängerung um zwei Jahre.
Der Deal sieht die Ausgabe von Warrants an den Kreditgeber vor, die bei vollständiger Inanspruchnahme bis zu 46 % des voll verwässerten Eigenkapitals betragen könnten. Die Fazilität wird durch eine vorrangige Besicherung der Unternehmensvermögen gedeckt und enthält Bestimmungen zur Ernennung eines Chief Restructuring Officer sowie zur Einrichtung eines Voting Trust für bestimmte Aktionäre.
- Secured term loan facility of up to $55 million providing significant working capital
- Investor commitment to pursue acquisition of additional assignor claim rights
- Potential for portfolio expansion through new claim acquisitions or servicing rights
- 36-month maturity with possibility of two one-year extensions
- Significant equity dilution potential with warrants covering up to 46% of fully diluted shares
- Term sheet is non-binding and subject to various conditions and approvals
- Requires first-priority security interest in substantially all assets
- May require appointment of Chief Restructuring Officer, indicating potential financial stress
Insights
MSP Recovery secures potential $55M loan facility with significant dilution risk up to 46% of equity through warrant issuances.
MSP Recovery has entered a non-binding term sheet for a secured term loan facility of up to
The financing structure raises serious dilution concerns. In exchange for advances, MSP must issue warrants with a nominal
The 36-month maturity with potential extensions, first-priority security interest requirements, and provisions for appointing a Chief Restructuring Officer suggest this is a rescue financing package with strict oversight. Additional lender controls include customary fees, budget approvals, financial reporting requirements, and a voting trust arrangement for certain shareholders - all indicating the company's constrained negotiating position.
While management frames this as creating "strategic alignment with partners," the terms reflect challenging financial circumstances with potentially significant shareholder value implications. Nasdaq shareholder approval requirements for certain aspects of the deal highlight the material nature of these transactions on the company's capital structure.
MIAMI, Aug. 29, 2025 (GLOBE NEWSWIRE) -- MSP Recovery, Inc. (NASDAQ: MSPR) (the “Company”), a Medicare, Medicaid, commercial, and secondary payer reimbursement recovery and technology leader, announces it has entered into a non-binding term sheet for a new secured term loan facility of up to
Facility Structure
The Term Sheet provides for a potential first lien secured delayed draw term loan facility (the “Facility”) in an aggregate principal amount of up to
- Tranche A Loans: up to
$10.0 million , of which$5.0 million is expected to be funded at closing, and up to$5.0 million may be advanced at the Lender’s sole and absolute discretion prior to satisfaction of a specified contingency. - Tranche B Loan: up to
$45.0 million , available after the closing date, subject to the same contingency and the Lender’s sole and absolute discretion.
The Facility would mature 36 months following closing, subject to two potential one-year extensions at the discretion of Lender. The obligations of the Co-Borrowers would be secured by a first-priority security interest in substantially all of their assets, subject to inter-creditor arrangements with existing creditors.
In connection with advances under the Facility, the Company would issue to the Lender warrants to purchase shares of the Company’s Class A common stock equal to specified percentages of the Company’s fully diluted equity, with an exercise price of
The Term Sheet further contemplates customary fees, budgets, financial reporting requirements, oversight, and approval rights for the Lender, the potential appointment of a Chief Restructuring Officer, and a voting trust arrangement for certain existing shareholders. Certain extensions of credit and warrant issuances may be subject to shareholder approval under applicable Nasdaq rules.
MSP Recovery Founder and CEO, John H. Ruiz said, “The transactions contemplated in the term sheet agreement would pave the way for a capital infusion, aiming to create strategic alignment with partners who share our long-term vision. As we work to optimize the capital structure, our confidence in the company’s underlying claims and business model remains unchanged. We also remain steadfast in seeking justice for our healthcare clients through continuing litigation strategies, and committed to meaningful outcomes across the healthcare industry.”
About MSP Recovery, Inc.
Founded in 2014, MSP Recovery has become a Medicare, Medicaid, commercial, and secondary payer reimbursement recovery leader, disrupting the antiquated healthcare reimbursement system with data-driven solutions to secure recoveries from responsible parties. MSP Recovery, Inc. innovates technologies and provides comprehensive solutions for multiple industries including healthcare and legal. For more information, visit: msprecovery.com
Forward Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “plan,” and “will” or, in each case, their negative, or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance or results and actual events may differ materially from those expressed in or suggested by the forward-looking statements.
Any forward-looking statement made by the Company herein speaks only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for the Company to predict or identify all such events or how they may affect it. MSP Recovery has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws.
Factors that could cause these differences include, but are not limited to, the Company’s ability to capitalize on its assignment agreements and recover monies that were paid by the assignors; the inability of MSP Recovery to obtain financing and generate revenues sufficient to cover the cost of operations; the inherent uncertainty surrounding settlement negotiations and/or litigation, including with respect to both the amount and timing of any such results; the validity of the assignments of claims to MSP Recovery; the ability to successfully expand the scope of the Company’s claims or obtain new data and claims from the Company’s existing assignor base or otherwise; the Company’s ability to innovate and develop new solutions, and whether those solutions will be adopted by the Company’s existing and potential assignors; negative publicity concerning healthcare data analytics and payment accuracy; and those additional factors included in MSP Recovery’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by it with the Securities and Exchange Commission. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.
For Media Inquiries:
media@msprecovery.com
For Investor Inquiries:
investors@msprecovery.com
FAQ
What is the size of MSP Recovery's new term loan facility?
How much equity dilution could MSPR shareholders face from this deal?
What are the key terms of MSPR's new loan facility?
How is the $55M loan facility structured for MSPR?
What corporate governance changes are included in MSPR's term sheet?
