MSP Recovery (MSPR) secures single $300K advance amid tight liquidity

Rhea-AI Filing Summary

MSP Recovery, Inc. entered into a letter agreement with Hazel Partners Holdings LLC on January 19, 2026 for a one-time advance of $300,000 under its existing working capital credit facility. The funds were provided through the facility’s discretionary Operational Collection Floor and may be used solely for operating expenses.

The advance, funded on January 20, 2026, was subject to conditions under the credit agreement, including no default at the time of funding. MSP Recovery explains that this is a standalone accommodation that does not reinstate or expand availability under the working capital facility, which previously had reached approximately $6.0 million of aggregate advances. The company states that no additional funding is currently available under the facility and that it has no rights to, and no reasonable basis to expect, further advances from Hazel, cautioning that this payment should not be viewed as an indication of ongoing liquidity support.

Insights

Credit & Liquidity Analyst

Small one-time $300,000 advance underscores stressed, non-committed liquidity.

MSP Recovery obtained a $300,000 one-time advance from Hazel Partners under its existing working capital credit facility, limited to operating expenses. This draw comes via the Operational Collection Floor, which the company notes is entirely discretionary, with no borrowing base, commitment, or minimum availability, and previously had aggregate advances of about $6.0 million.

The company emphasizes that this advance is a standalone accommodation that does not replenish or reopen any availability and that no additional funding is currently available under the facility. It further states it has no rights to, and no reasonable basis to expect, any further advances, and cautions that the payment should not be viewed as evidence of future funding or broader liquidity. This language points to a constrained funding environment where short-term operating needs are being met with ad hoc, lender-discretionary support rather than committed capital.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 19, 2026

MSP Recovery, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation)		001-39445 (Commission File Number)		84-4117825 (I.R.S. Employer Identification No.)
3150 SW 38th Avenue Suite 1100 Miami, Florida				33146
(Address of principal executive offices)				(Zip Code)

(305) 614-2222

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A common stock, $0.0001 par value per share		MSPR		OTC Market Group, Inc.
Redeemable warrants, each lot of 4,375 warrants exercisable for one share of Class A common stock at an exercise price of $50,312.50 per share		MSPRW		OTC Market Group, Inc.
Redeemable warrants, each lot of 4,375 warrants exercisable for one share of Class A common stock at an exercise price of $0.4375 per share		MSPRZ		OTC Market Group, Inc.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01. Entry into a Material Definitive Agreement

On January 19, 2026, MSP Recovery, Inc. (the “Company”), through its subsidiaries, entered into a letter agreement with Hazel Partners Holdings LLC (“Hazel”), in its capacity as administrative agent and lender under the Company’s existing working capital credit facility (the “Hazel Letter Agreement”) to provide $300,000 to be used solely for operating expenses.

As previously disclosed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (the “Q3-2025 Form 10-Q”), the Company is party to a working capital credit facility with Hazel (the “Working Capital Credit Facility”), which includes a discretionary funding mechanism referred to as the Operational Collection Floor. Advances under the Operational Collection Floor are made solely at Hazel’s discretion, are not subject to any commitment or minimum availability, and are conditioned on the satisfaction or waiver of applicable conditions under the governing credit documentation. The Working Capital Credit Facility does not provide the Company with committed liquidity, does not establish a borrowing base, and does not obligate Hazel to fund any amounts.

As of the filing of the Q3-2025 Form 10-Q, the Company disclosed that aggregate advances under the Operational Collection Floor had reached approximately $6.0 million, and that no remaining funding capacity was available under the facility at that time.

Pursuant to the Hazel Letter Agreement, Hazel has agreed, in its sole discretion, to make a one-time advance of $300,000 to increase the Operational Collection Floor beyond the previously disclosed level. The advance was funded on January 20, 2026, subject to the conditions set forth in the Hazel Letter Agreement and the underlying credit agreement, including the absence of any event of default or default at the time of funding.

The $300,000 advance is a standalone accommodation and does not reinstate, replenish, or otherwise reopen availability under the Working Capital Credit Facility or the Operational Collection Floor. Other than this specific advance, no additional funding is currently available to the Company under the Working Capital Credit Facility, and the Company has no rights to, and no reasonable basis to expect, any further advances thereunder. The Hazel Letter Agreement does not modify the discretionary nature of the facility, does not create any commitment for future funding, and does not provide the Company with access to ongoing or recurring liquidity.

The Company cautions that the receipt of the $300,000 advance should not be viewed as indicative of Hazel’s willingness to provide future funding, the availability of additional liquidity, or the Company’s ability to meet its operating or debt service obligations beyond the funding of this specific amount.

The foregoing description of the Hazel Letter Agreement does not purport to be complete and is qualified in its entirety by reference to the Hazel Letter Agreement, a copy of which is filed as an exhibit to this Current Report on Form 8-K.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

To the extent required by Item 2.03 of Form 8-K, the information contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits

Exhibit Number		Description
10.1		Letter Agreement dated January 19, 2026
10.2		Amendment No. 3 to Second Amended and Restated Credit Agreement dated October 2, 2024 (incorporated by reference to Exhibit 10.1 to the Form 8-K filed on October 7, 2024)
104		Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

				MSP RECOVERY, INC.
Dated: January 22, 2026
				By:		/s/ John H. Ruiz
				Name:		John H. Ruiz
				Title:		Chief Executive Officer

FAQ

What did MSPR disclose in this 8-K about new financing?

MSP Recovery, Inc. disclosed that it entered into a letter agreement with Hazel Partners Holdings LLC under its existing working capital credit facility for a one-time $300,000 advance, to be used solely for operating expenses.

How much additional funding did MSPR receive from Hazel Partners?

MSP Recovery received a one-time $300,000 advance from Hazel Partners through the Operational Collection Floor mechanism under its working capital credit facility.

Does MSPR’s working capital credit facility with Hazel provide committed liquidity?

No. The company states that its working capital credit facility with Hazel provides no committed liquidity, has no borrowing base, and gives Hazel no obligation to fund amounts; advances are entirely at Hazel’s discretion.

Is more funding available to MSPR under the Hazel working capital facility?

MSP Recovery states that, aside from the specific $300,000 advance, no additional funding is currently available under the working capital credit facility and it has no rights to, and no reasonable basis to expect, further advances.

When was the $300,000 advance to MSPR funded and for what purpose?

The $300,000 advance was funded on January 20, 2026 and may be used solely for operating expenses, subject to conditions in the letter agreement and the underlying credit agreement.

What caution did MSPR give about Hazel’s future funding willingness?

MSP Recovery cautioned that receipt of the $300,000 advance should not be viewed as indicative of Hazel’s willingness to provide future funding, the availability of additional liquidity, or the company’s ability to meet operating or debt service obligations beyond this specific amount.