{"url_path":"/sec/mspr/8-k/2026-06-30/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":"2026-06-30","source_url":"https://www.sec.gov/Archives/edgar/data/1802450/0001213900-26-073663-index.html","accession_number":"0001213900-26-073663","cik":"0001802450","ticker":"MSPR","issuer_name":"MSP Recovery, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1802450/0001213900-26-073663-index.html","primary_entity_key":"0001802450","primary_entity_name":"MSP Recovery, Inc."},"word_count":484,"has_tables":true,"body_markdown":"** **\n\n**Item\n1.01. Entry into a Material Definitive Agreement**\n\n** **\n\n*Hazel\nPartners Holdings, LLC Funding*\n\n* *\n\nOn\nJune 26, 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 $0.2 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 $0.2 million to increase\nthe Operational Collection Floor beyond the previously disclosed level. The advance was funded on June 26, 2026, subject to the\nconditions set forth in the Hazel Letter Agreement and the underlying credit agreement, including the absence of any event of default\nor default at the time of funding.\n\n \n\nThe\n$0.2 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 $0.2 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."}