MSP Recovery gets one-time $0.2M lifeline from Hazel

Q: What did MSPR disclose about new funding from Hazel Partners Holdings LLC?

MSP Recovery secured a one-time $0.2 million advance from Hazel Partners Holdings LLC under its working capital credit facility. The money is intended primarily for operating expenses and was funded on June 26, 2026, subject to conditions in existing credit documentation.

Q: Does the new Hazel advance give MSPR ongoing borrowing capacity?

No. MSP Recovery states the $0.2 million advance is a standalone accommodation that does not reinstate or reopen availability under the working capital credit facility and does not provide access to ongoing or recurring liquidity from Hazel.

Q: What caution does MSPR give about future funding from Hazel?

MSP Recovery cautions that, aside from the $0.2 million advance, no additional funding is currently available under the Hazel facility. It adds that it has no rights to, and no reasonable basis to expect, any further advances under this working capital arrangement.

MSP Recovery, Inc. entered a material letter agreement with Hazel Partners Holdings LLC, its lender under an existing working capital credit facility, for a one-time advance of $0.2 million on June 26, 2026.

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

MSP Recovery, Inc. entered a material letter agreement with Hazel Partners Holdings LLC, its lender under an existing working capital credit facility, for a one-time advance of $0.2 million on June 26, 2026. The funding is to be used primarily for operating expenses and was provided under Hazel’s discretionary “Operational Collection Floor” mechanism.

The company previously disclosed aggregate advances of about $6.0 million under this mechanism, with no remaining capacity. This new advance temporarily increases that floor but is described as a standalone accommodation that does not reinstate or reopen availability under the facility. MSP Recovery states that aside from this specific amount, no additional funding is available, and it has no rights to or reasonable basis to expect further advances from Hazel.

The company emphasizes that the $0.2 million advance does not change the discretionary nature of the credit facility or provide ongoing or recurring liquidity, and cautions that it should not be viewed as evidence of future funding or the company’s ability to meet operating or debt service obligations beyond this limited support.

Positive

None.

Negative

The company highlights that its working capital credit facility with Hazel provides no committed liquidity, and that beyond this one-time $0.2 million advance it has no rights to and “no reasonable basis to expect” further funding, underscoring ongoing liquidity strain.

Insights

MSP Recovery secures a small one-time cash advance while warning about ongoing liquidity constraints.

MSP Recovery obtained a discretionary $0.2 million advance from Hazel Partners Holdings LLC under its working capital credit facility. This follows previously disclosed aggregate advances of about $6.0 million under the Operational Collection Floor, which had reached its prior capacity.

The company clearly states this advance is a standalone accommodation that does not reinstate or reopen funding availability and that Hazel remains under no obligation to lend. Language that there is “no reasonable basis to expect” further advances and that the facility does not provide ongoing or recurring liquidity signals continued tight funding conditions.

While the absolute dollar amount is modest, the disclosed dependence on discretionary funding and the explicit caution about future liquidity will matter for assessments of going-forward financial flexibility. Subsequent periodic reports will be important for understanding how MSP Recovery addresses operating and debt service needs beyond this one-time support.

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.

Key Figures

One-time advance: $0.2 million Prior Operational Collection Floor advances: $6.0 million High-price warrant exercise lot size: 4,375 warrants per lot +2 more

5 metrics

One-time advance $0.2 million Standalone Hazel advance for operating expenses funded June 26, 2026

Prior Operational Collection Floor advances $6.0 million Aggregate advances disclosed as of Q3-2025 Form 10-Q

High-price warrant exercise lot size 4,375 warrants per lot Redeemable warrants exercisable for one Class A share at $50,312.50 per share

High-price warrant exercise price $50,312.50 per share Each lot of 4,375 warrants exercisable for one Class A share

Low-price warrant exercise price $0.4375 per share Each lot of 4,375 warrants exercisable for one Class A share

Key Terms

Material Definitive Agreement, Operational Collection Floor, working capital credit facility, Emerging growth company, +1 more

5 terms

Material Definitive Agreement regulatory

"Item 1.01. Entry into a Material Definitive Agreement Hazel Partners Holdings, LLC Funding"

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.

Operational Collection Floor financial

"a discretionary funding mechanism referred to as the Operational Collection Floor"

working capital credit facility financial

"the Company is party to a working capital credit facility with Hazel"

Emerging growth company regulatory

"Emerging growth company Item 1.01. Entry into a Material Definitive Agreement"

An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.

Redeemable warrants financial

"Redeemable warrants, each lot of 4,375 warrants exercisable for one share"

A redeemable warrant is a tradable right that lets its holder buy a company’s shares at a fixed price before a set date, but the issuer has the contract power to cancel (redeem) the warrant early under agreed terms. For investors this matters because early redemption can force decision-making, change the timing of when new shares might be created, and affect potential gains or dilution—much like a store coupon that the issuer can cancel by paying you off instead of letting you use it.

FAQ

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

What did MSPR disclose about new funding from Hazel Partners Holdings LLC?

MSP Recovery secured a one-time $0.2 million advance from Hazel Partners Holdings LLC under its working capital credit facility. The money is intended primarily for operating expenses and was funded on June 26, 2026, subject to conditions in existing credit documentation.

Does the new Hazel advance give MSPR ongoing borrowing capacity?

No. MSP Recovery states the $0.2 million advance is a standalone accommodation that does not reinstate or reopen availability under the working capital credit facility and does not provide access to ongoing or recurring liquidity from Hazel.

How much has MSPR previously received under the Operational Collection Floor?

MSP Recovery previously disclosed aggregate advances of about $6.0 million under the Operational Collection Floor feature of the Hazel working capital facility. At that time, no remaining funding capacity was available, prompting this separate one-time $0.2 million accommodation.

What caution does MSPR give about future funding from Hazel?

MSP Recovery cautions that, aside from the $0.2 million advance, no additional funding is currently available under the Hazel facility. It adds that it has no rights to, and no reasonable basis to expect, any further advances under this working capital arrangement.

What kind of agreement did MSPR enter into with Hazel on June 26, 2026?

On June 26, 2026, MSP Recovery, through its subsidiaries, entered into a Hazel Letter Agreement, described as a material definitive agreement. This letter documents Hazel’s discretionary decision to provide a one-time $0.2 million advance under the existing working capital credit facility.

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

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Accepted by SEC EDGAR 06/30/2026 - 04:01 PM

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): June 26, 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 June 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 $0.2 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 Agreement, Hazel has agreed, in its sole discretion, to make a one-time advance of $0.2 million to increase the Operational Collection Floor beyond the previously disclosed level. The advance was funded on June 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 $0.2 million 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 $0.2 million 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		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 June 26, 2026
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.

Dated: June 30, 2026	MSP Recovery, Inc.

	By:	/s/ John H. Ruiz
	Name:	John H. Ruiz
	Title:	Chief Executive Officer

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

5 documents

Agreements & Contracts

EX-10.2 HAZEL LETTER AGREEMENT DATED JUNE 26, 2026 20.1 KB

MSP Recovery gets one-time $0.2M lifeline from Hazel