{"url_path":"/sec/msprz/8-k/2026-05-19/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":"2026-05-19","source_url":"https://www.sec.gov/Archives/edgar/data/1802450/0001213900-26-059017-index.html","accession_number":"0001213900-26-059017","cik":"0001802450","ticker":"MSPR","issuer_name":"MSP Recovery, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1802450/0001213900-26-059017-index.html","primary_entity_key":"0001802450","primary_entity_name":"MSP Recovery, Inc."},"word_count":732,"has_tables":true,"body_markdown":"**Item 1.01. Entry into a Material Definitive Agreement**\n\n** **\n\n*Hazel Partners Holdings, LLC Funding*\n\n \n\nOn May 15, 2026, MSP Recovery,\nInc. (the “Company”), through its subsidiaries, entered into a letter agreement with Hazel Partners Holdings LLC (“Hazel”),\nin its capacity as administrative agent and lender under the Company’s existing working capital credit facility (the “Hazel\nLetter Agreement”) to provide $0.1 million to be used primarily for operating expenses.\n\n \n\nAs previously disclosed\nin the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (the “Q3-2025 Form 10-Q”),\nthe Company is party to a working capital credit facility with Hazel (the “Working Capital Credit Facility”), which includes\na discretionary funding mechanism referred to as the Operational Collection Floor. Advances under the Operational Collection Floor are\nmade solely at Hazel’s discretion, are not subject to any commitment or minimum availability, and are conditioned on the satisfaction\nor waiver of applicable conditions under the governing credit documentation. The Working Capital Credit Facility does not provide the\nCompany with committed liquidity, does not establish a borrowing base, and does not obligate Hazel to fund any amounts.\n\n \n\nAs of the filing of the\nQ3-2025 Form 10-Q, the Company disclosed that aggregate advances under the Operational Collection Floor had reached approximately $6.0\nmillion, and that no remaining funding capacity was available under the facility at that time.\n\n \n\nPursuant to the Hazel Letter\nAgreement, Hazel has agreed, in its sole discretion, to make a one-time advance of $0.1 million to increase the Operational Collection\nFloor beyond the previously disclosed level. The advance was funded on May 15, 2026, subject to the conditions set forth in the Hazel\nLetter Agreement and the underlying credit agreement, including the absence of any event of default or default at the time of funding.\n\n \n\nThe $0.1 million advance\nis a standalone accommodation and does not reinstate, replenish, or otherwise reopen availability under the Working Capital Credit Facility\nor the Operational Collection Floor. Other than this specific advance, no additional funding is currently available to the Company under\nthe Working Capital Credit Facility, and the Company has no rights to, and no reasonable basis to expect, any further advances thereunder.\nThe Hazel Letter Agreement does not modify the discretionary nature of the facility, does not create any commitment for future funding,\nand does not provide the Company with access to ongoing or recurring liquidity.\n\n \n\nThe Company cautions that\nthe receipt of the $0.1 million advance should not be viewed as indicative of Hazel’s willingness to provide future funding, the\navailability of additional liquidity, or the Company’s ability to meet its operating or debt service obligations beyond the funding\nof this specific amount.\n\n \n\nThe foregoing description\nof the Hazel Letter Agreement does not purport to be complete and is qualified in its entirety by reference to the Hazel Letter Agreement,\na copy of which is filed as an exhibit to this Current Report on Form 8-K.\n\n* *\n\n*VRM MSP Recovery Partners, LLC Advance*\n\n \n\nOn May 15, 2026, the Company\nentered into a letter agreement (the “Advance Letter”) with VRM MSP Recovery Partners, LLC (“VRM”), pursuant to\nwhich VRM agreed to make available a one-time advance of recovery proceeds of $0.1 million to be used primarily to support the Company’s\naccounts payables.\n\n \n\nThe Advance Letter provides\nthat the Company will reimburse VRM for the full amount of the Advance, together with certain amounts previously permitted to be used\nby MSP Recovery from recovery proceeds otherwise distributable to VRM (the “Prior Consents”), promptly upon the closing of\nany loan or other financing transaction by the Company or its affiliates (other than proceeds from certain short-term financing from Hazel\nPartners Holdings, LLC), including financing from YA II PN, Ltd. or any debtor-in-possession financing in the event the Company operates\nunder Chapter 11 protection. The Advance Letter further contemplates that any such financing counterparty would permit the use of financing\nproceeds for the reimbursement described above.\n\n* *\n\n**\n\n1\n\n \n\n** \n\nThe Advance is described\nin the Advance Letter as a one-time advance and does not imply any obligation of VRM to provide any further advances, and VRM reserved\nall rights under the applicable limited liability company agreement and related documents.\n\n \n\nThe foregoing description of the Advance Letter\ndoes not purport to be complete and is qualified in its entirety by reference to the full text of the Advance Letter, which is filed as\nan exhibit to this Current Report on Form 8-K."}