One-time $250K lifeline for MSP Recovery (MSPR) from Hazel

Rhea-AI Filing Summary

MSP Recovery, Inc. entered into a letter agreement with Hazel Partners Holdings LLC, its working capital lender, under which Hazel made a one-time discretionary advance of $250,000 on January 26, 2026, to be used primarily for operating expenses. This advance increases the amount previously drawn under the facility’s Operational Collection Floor but is described as a standalone accommodation. The company states that this funding does not reinstate or reopen availability under the working capital credit facility and that, apart from this advance, no additional funding is currently available. MSP Recovery further notes it has no rights to, and no reasonable basis to expect, any further advances, and cautions that this payment should not be seen as a sign of future support or ongoing liquidity.

Positive

• None.

Negative

• Ongoing liquidity constraints highlighted: Apart from the single $250,000 advance, MSP Recovery states that no additional funding is currently available under the Hazel working capital facility and it has no reasonable basis to expect further advances.

Insights

Credit and liquidity analyst

MSP Recovery gains a small $250,000 cash advance but highlights severe limits on future liquidity.

MSP Recovery obtained a one-time $250,000 advance on January 26, 2026 from Hazel Partners under its existing working capital credit facility. The advance is discretionary, funded under the Operational Collection Floor, and conditioned on no defaults, reinforcing Hazel’s control over whether funds are available at any time.

The company states that the facility does not provide committed liquidity, does not establish a borrowing base, and does not obligate Hazel to fund amounts. It also notes that, beyond this specific advance, no additional funding is currently available and it has no reasonable basis to expect further advances, underscoring constrained access to external working capital.

For investors evaluating MSP Recovery’s risk profile, the key takeaway is that this modest cash injection is explicitly not a sign of ongoing support. Future disclosures in company reports will be important for understanding how MSP Recovery addresses operating and debt service needs after this limited funding.

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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 26, 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 26, 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 $250,000 to be used primarily 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 $250,000 to increase the Operational Collection Floor beyond the previously disclosed level. The advance was funded on January 26, 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 $250,000 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 $250,000 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 26, 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 27, 2026
				By:		/s/ John H. Ruiz
				Name:		John H. Ruiz
				Title:		Chief Executive Officer

FAQ

What did MSP Recovery (MSPR) announce in this 8-K?

MSP Recovery disclosed that, through its subsidiaries, it entered into a letter agreement with Hazel Partners Holdings LLC under which Hazel made a one-time discretionary advance of $250,000 on January 26, 2026, primarily for operating expenses.

How much new funding did MSP Recovery (MSPR) receive from Hazel?

MSP Recovery received a single advance of $250,000 from Hazel under its existing working capital credit facility, characterized as a standalone accommodation to be used primarily for operating expenses.

Does the Hazel agreement give MSP Recovery (MSPR) ongoing access to credit?

No. The company states that the working capital credit facility is fully discretionary, provides no committed liquidity or borrowing base, and that, other than this specific $250,000 advance, no additional funding is currently available under the facility.

Can MSP Recovery (MSPR) expect more advances from Hazel after this $250,000?

MSP Recovery notes it has no rights to, and no reasonable basis to expect, any further advances under the Hazel working capital credit facility, and cautions that this payment should not be viewed as indicative of future funding.

What risks does MSP Recovery (MSPR) highlight around this $250,000 advance?

The company cautions that the $250,000 advance does not create any commitment for future funding, does not reopen availability under the facility, and should not be interpreted as evidence of additional liquidity or its ability to meet operating or debt service obligations beyond this amount.

How does the Hazel advance relate to MSP Recovery’s existing credit facility?

The advance is made under the existing working capital credit facility’s Operational Collection Floor, is fully at Hazel’s discretion, and is described as a one-time accommodation that does not reinstate or replenish any funding capacity under that facility.