MSP Recovery gets $325K one-time credit advance

MSP Recovery, Inc. entered into a letter agreement with Hazel Partners Holdings LLC under its existing working capital credit facility for a one-time advance of $325,000 to be used solely for operating expenses.

Rhea-AI Filing Summary

MSP Recovery, Inc. entered into a letter agreement with Hazel Partners Holdings LLC under its existing working capital credit facility for a one-time advance of $325,000 to be used solely for operating expenses. This advance, made under the facility’s discretionary Operational Collection Floor, is expected to fund on or before January 9, 2026, subject to conditions including the absence of any default.

The company explains that this $325,000 advance is a standalone accommodation that does not reinstate or reopen any additional availability under the credit facility. Beyond this amount, no further funding is currently available, and the company states it has no rights to, and no reasonable basis to expect, any additional advances. MSP Recovery cautions that this funding should not be viewed as evidence of Hazel’s willingness to provide future liquidity or of the company’s ability to meet operating or debt service obligations beyond this specific advance.

Positive

• None.

Negative

• Liquidity remains constrained: the $325,000 advance is a one-time, discretionary accommodation, with no additional availability or rights to future funding under the working capital facility.

Insights

Credit & Liquidity Analyst

MSP Recovery obtains a small, one-time $325K advance amid tight, discretionary liquidity.

MSP Recovery has secured a one-time $325,000 advance from Hazel Partners Holdings LLC under its existing working capital credit facility. The advance is tied to the facility’s Operational Collection Floor, which is fully discretionary, with no borrowing base or committed minimum funding. Funding is expected on or before January 9, 2026, assuming conditions such as no event of default are satisfied.

The company emphasizes that this advance does not reopen capacity under the facility and that, apart from this amount, no additional funding is available. It further states it has no rights to, and no reasonable basis to expect, any future advances, reinforcing that the facility does not provide ongoing or recurring liquidity. This language highlights continued reliance on limited, discretionary funding rather than committed credit support.

The company also cautions that receipt of the $325,000 should not be interpreted as Hazel’s willingness to provide future funding or as assurance of meeting operating or debt service obligations beyond this specific advance. For investors focused on credit risk, this points to persistent liquidity strain and dependence on ad hoc accommodations, rather than a durable financing solution.

8-K Event Classification

3 items: 1.01, 2.03, 9.01

3 items

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, or exhibit attachments filed with this report.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

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

MSP Recovery disclosed a letter agreement under which Hazel Partners Holdings LLC agreed, in its sole discretion, to make a one-time $325,000 advance under the existing working capital credit facility.

How will MSPR use the $325,000 advance from Hazel?

The company states that the $325,000 advance from Hazel is to be used solely for operating expenses.

Does the Hazel agreement give MSPR ongoing access to liquidity?

No. MSP Recovery explains that this is a standalone advance that does not reinstate or reopen availability under the facility, and that it has no rights to, and no reasonable basis to expect, any further advances.

What is the nature of MSPR’s working capital credit facility with Hazel?

The facility includes a discretionary Operational Collection Floor; advances are made solely at Hazel’s discretion, with no borrowing base, no committed liquidity, and no obligation for Hazel to fund any amounts.

When is the $325,000 advance to MSPR expected to be funded?

The advance is expected to be funded on or before January 9, 2026, subject to conditions in the Hazel Letter Agreement and underlying credit agreement, including no event of default.

What caution did MSPR provide regarding future funding from Hazel?

MSP Recovery cautions that receipt of the $325,000 advance should not be viewed as indicative of Hazel’s willingness to provide future funding or of the availability of additional liquidity.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 01/07/2026 - 04:30 PM Learn about SEC filing dates

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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 5, 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 7, 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 $325,000 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 $325,000 to increase the Operational Collection Floor beyond the previously disclosed level. The advance is expected to be funded on or before January 9, 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 $325,000 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 $325,000 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 7, 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 7, 2026
				By:		/s/ John H. Ruiz
				Name:		John H. Ruiz
				Title:		Chief Executive Officer