{"url_path":"/sec/mspr/8-k/2026-06-04/item-1-01","section_key":"item-1-01","section_title":"Item 1.01 Entry into a Material Definitive Agreement**","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-06-04","source_url":"https://www.sec.gov/Archives/edgar/data/1802450/0001213900-26-065393-index.html","accession_number":"0001213900-26-065393","cik":"0001802450","ticker":"MSPR","issuer_name":"MSP Recovery, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1802450/0001213900-26-065393-index.html","primary_entity_key":"0001802450","primary_entity_name":"MSP Recovery, Inc."},"word_count":788,"has_tables":true,"body_markdown":"**Item\n1.01. Entry into a Material Definitive Agreement**\n\n** **\n\n*Hazel\nPartners Holdings, LLC Funding*\n\n* *\n\nOn\nMay 29, 2026, MSP Recovery, Inc. (the “Company”), through its subsidiaries, entered into a letter agreement with Hazel Partners\nHoldings LLC (“Hazel”), in its capacity as administrative agent and lender under the Company’s existing working capital\ncredit facility (the “Hazel Letter Agreement”) to provide $0.1 million to be used primarily for operating expenses.\n\n \n\nAs\npreviously disclosed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (the “Q3-2025\nForm 10-Q”), the Company is party to a working capital credit facility with Hazel (the “Working Capital Credit Facility”),\nwhich includes a discretionary funding mechanism referred to as the Operational Collection Floor. Advances under the Operational Collection\nFloor are made solely at Hazel’s discretion, are not subject to any commitment or minimum availability, and are conditioned on\nthe satisfaction or waiver of applicable conditions under the governing credit documentation. The Working Capital Credit Facility does\nnot provide the Company with committed liquidity, does not establish a borrowing base, and does not obligate Hazel to fund any amounts.\n\n \n\nAs\nof the filing of the Q3-2025 Form 10-Q, the Company disclosed that aggregate advances under the Operational Collection Floor had reached\napproximately $6.0 million, and that no remaining funding capacity was available under the facility at that time.\n\n \n\nPursuant\nto the Hazel Letter Agreement, Hazel has agreed, in its sole discretion, to make a one-time advance of $0.1 million to increase the Operational\nCollection Floor beyond the previously disclosed level. The advance was funded on May 29, 2026, subject to the conditions set forth\nin the Hazel Letter Agreement and the underlying credit agreement, including the absence of any event of default or default at the time\nof funding.\n\n \n\nThe\n$0.1 million advance is a standalone accommodation and does not reinstate, replenish, or otherwise reopen availability under the Working\nCapital Credit Facility or the Operational Collection Floor. Other than this specific advance, no additional funding is currently available\nto the Company under the Working Capital Credit Facility, and the Company has no rights to, and no reasonable basis to expect, any further\nadvances thereunder. The Hazel Letter Agreement does not modify the discretionary nature of the facility, does not create any commitment\nfor future funding, and does not provide the Company with access to ongoing or recurring liquidity.\n\n \n\nThe\nCompany cautions that the receipt of the $0.1 million advance should not be viewed as indicative of Hazel’s willingness to provide\nfuture funding, the availability of additional liquidity, or the Company’s ability to meet its operating or debt service obligations\nbeyond the funding of this specific amount.\n\n \n\nThe\nforegoing description of the Hazel Letter Agreement does not purport to be complete and is qualified in its entirety by reference to\nthe Hazel Letter Agreement, a copy of which is filed as an exhibit to this Current Report on Form 8-K.\n\n \n\n*VRM\nMSP Recovery Partners, LLC Advances*\n\n* *\n\nOn\nMay 29, 2026, the Company entered into two letter agreements (the “VRM Letter Agreements”) with VRM MSP Recovery Partners,\nLLC (“VRM”).\n\n \n\nPursuant\nto the Advance Letter (the “Advance Letter”), VRM agreed to make available a one-time advance of $0.06 million. Pursuant\nto the Recovery Proceeds Letter (the “Recovery Proceeds Letter”), VRM agreed to permit the Company a one-time retention of\n$0.06 million in Primary Series Recovery Proceeds otherwise payable to VRM. Funding made available pursuant to the VRM Letter Agreements\nis to be used primarily to support the Company’s accounts payable obligations.\n\n \n\nThe\nVRM Letter Agreements provide that the Company will reimburse VRM for the full amounts under the Advance Letter and the Recovery Proceeds\nLetter, together with certain amounts previously permitted to be used by the Company from recovery proceeds otherwise distributable to\nVRM (the “Prior Consents”), promptly upon the closing of any loan or other financing transaction by the Company or its affiliates\n(other than proceeds from certain short-term financing from Hazel Partners Holdings, LLC), including financing from YA II PN, Ltd. or\nany debtor-in-possession financing in the event the Company operates under Chapter 11 protection. The VRM Letter Agreements further contemplate\nthat any such financing counterparty would permit the use of financing proceeds for the reimbursement described above.\n\n \n\nThe\nadvances set forth in the VRM Letter Agreements are described as one-time advances, and do not imply any obligation of VRM to provide\nany further advances, and VRM reserved all rights under the applicable limited liability company agreement and related documents.\n\n \n\nThe\nforegoing description of the VRM Letter Agreements does not purport to be complete and is qualified in its entirety by reference to the\nfull text of the VRM Letter Agreements, which are filed as exhibits to this Current Report on Form 8-K.\n\n \n\n1"}