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  4. [8-K] MSP Recovery, Inc. Reports Material Event

MSP Recovery (MSPR) secures $0.12M Hazel funding with no future commitment

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

MSP Recovery, Inc. entered into two letter agreements with Hazel Partners Holdings LLC under its existing working capital credit facility to obtain one-time discretionary advances of $0.07 million and $0.05 million, primarily for operating expenses. These advances increase the Operational Collection Floor beyond the approximately $6.0 million of aggregate advances disclosed as of the filing of the Q3‑2025 Form 10‑Q.

The company explains that this facility remains fully discretionary, provides no committed liquidity or borrowing base, and does not obligate Hazel to fund any amounts. It states that, aside from these specific advances, no additional funding is currently available, it has no rights to further advances, and it has no reasonable basis to expect additional funding or access to ongoing or recurring liquidity.

Positive

  • None.

Negative

  • Beyond the combined $0.12 million of one-time advances, the company reports no additional funding available under the Hazel working capital facility and states it has no rights or reasonable basis to expect any further advances.

Filing Explained

The company reports that Hazel funded the two one-time advances—$0.07 million on July 20, 2026 and $0.05 million on July 29, 2026—under standalone agreements; they provide the disclosed funding but do not reopen the facility or create future funding rights.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Hazel advance July 17, 2026 $0.07 million One-time discretionary advance under Hazel working capital credit facility for operating expenses
Hazel advance July 29, 2026 $0.05 million Second one-time discretionary advance under Hazel working capital credit facility for operating expenses
Operational Collection Floor advances approximately $6.0 million Aggregate advances reached this level as of the filing of the Q3-2025 Form 10-Q
Redeemable warrant lot size 4,375 warrants Each lot of 4,375 warrants exercisable for one share of Class A common stock
MSPRW warrant exercise price $50,312.50 per share Exercise price for one share of Class A common stock under MSPRW warrant lots
MSPRZ warrant exercise price $0.4375 per share Exercise price for one share of Class A common stock under MSPRZ warrant lots
Material Definitive Agreement regulatory
"Item 1.01. Entry into a Material Definitive Agreement Hazel Partners Holdings, LLC"
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
working capital credit facility financial
"the Company is party to a working capital credit facility with Hazel"
Operational Collection Floor financial
"a discretionary funding mechanism referred to as the Operational Collection Floor"
off-balance sheet arrangement regulatory
"Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement"
An off-balance sheet arrangement is a financial commitment or asset that a company keeps out of its main financial statements so it does not show up as a direct asset or liability. Think of it like renting equipment or using a separate storage locker instead of putting the item in your home: the economic effects exist, but they aren’t listed on the company’s primary balance sheet. Investors care because these arrangements can hide risks, obligations or sources of cash flow that affect a company’s true financial strength and future performance.

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FAQ

What funding did MSP Recovery (MSPR) receive from Hazel Partners in July 2026?
MSP Recovery received two one-time discretionary advances from Hazel Partners totaling $0.12 million: $0.07 million under a July 17, 2026 letter agreement and $0.05 million under a July 29, 2026 letter agreement, primarily for operating expenses.

What is the Hazel working capital credit facility described by MSPR?
MSP Recovery describes a Hazel-administered working capital credit facility that includes an Operational Collection Floor. Advances are made solely at Hazel’s discretion, with no commitment, no borrowing base, and no obligation for Hazel to provide funding.

Does MSP Recovery (MSPR) have committed liquidity under the Hazel facility?
No. MSP Recovery states the Hazel working capital credit facility provides no committed liquidity, establishes no borrowing base, and does not obligate Hazel to fund amounts. Advances, including the recent ones, are fully discretionary and subject to conditions.

How does MSP Recovery (MSPR) plan to use the Hazel Letter Agreement funds?
The company indicates the two Hazel advances of $0.07 million and $0.05 million are to be used primarily for operating expenses, providing limited short-term working capital support under its existing credit facility structure.

What does MSP Recovery (MSPR) say about future funding from Hazel?
MSP Recovery states that, aside from the specific $0.12 million advances, no additional funding is currently available under the Hazel facility and it has no rights to, and no reasonable basis to expect, any further advances.

What was the prior level of Operational Collection Floor advances for MSPR?
As of its Q3‑2025 Form 10‑Q filing, MSP Recovery disclosed that aggregate advances under the Operational Collection Floor had reached approximately $6.0 million, at which time no remaining funding capacity was available under that mechanism.
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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): July 17, 2026

 

 

 

MSP Recovery, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-39445   84-4117825
(State or other jurisdiction
of incorporation)		   (Commission File Number)  

(I.R.S. Employer
Identification No.)

 

3525 NW 7th Street    
Miami, Florida   33125
(Address of principal executive offices)   (Zip Code)

 

(305) 614-2222

(Registrant’s telephone number, including area code)

 

 

(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

 

Hazel Partners Holdings, LLC Funding

 

On July 17, 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 “July 17 Letter Agreement”) to provide $0.07 million to be used primarily for operating expenses.

 

On July 29, 2026, the Company, through its subsidiaries, entered into a letter agreement with Hazel, in its capacity as administrative agent and lender under the Company’s existing working capital credit facility (the “July 29 Letter Agreement,” and with the July 17 Letter Agreement, the “Hazel Letter Agreements”) to provide $0.05 million 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 Agreements, Hazel has agreed, in its sole discretion, to make two, one-time advances of $0.07 million and $0.05 million, respectively, to increase the Operational Collection Floor beyond the previously disclosed level. The advances were funded on July 20, 2026 and July 29, 2026, respectively, subject to the conditions set forth in the Hazel Letter Agreements and the underlying credit agreement, including the absence of any event of default or default at the time of funding.

 

The Hazel Letter Agreements are standalone accommodations and do not reinstate, replenish, or otherwise reopen availability under the Working Capital Credit Facility or the Operational Collection Floor. Other than these specific advances, 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 Agreements do not modify the discretionary nature of the facility, do not create any commitment for future funding, and do not provide the Company with access to ongoing or recurring liquidity.

 

The Company cautions that the receipt of funding pursuant to the Hazel Letter Agreements 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 Agreements does not purport to be complete and is qualified in its entirety by reference to the Hazel Letter Agreements, and a copy of each is filed as an exhibit to this Current Report on Form 8-K.

 

1

 

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   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)
10.2   Hazel Letter Agreement dated July 17, 2026
10.3   Hazel Letter Agreement dated July 29, 2026
104   Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document).

 

2

 

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: July 31, 2026  
   
  By: /s/ Thomas Hawkins
  Name: Thomas Hawkins
  Title: Director and Member of the Special Committee

 

3

 

Source: View Original Filing on SEC EDGAR

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