MSP Recovery (MSPR) Draws $69K More Under Hazel Credit Line

This summary was generated by AI from the company's SEC filing and may contain errors — always verify against the primary source on SEC.gov.

The short version

MSP Recovery, Inc. (MSPR) disclosed that its lender, Hazel Partners Holdings LLC, agreed to advance an additional $69,000 to subsidiary Subrogation Holdings, LLC by June 12, 2026, under an existing credit agreement. This latest draw brings the total cumulative "Operational Collection Floor" advances to $8,147,500. Hazel also previously provided a separate $550,000 advance to MSP Recovery, LLC for legal expenses in April 2025.

MSP Recovery, Inc. (Nasdaq: MSPR) filed an 8-K (a required disclosure for major company news) on June 18, 2026, revealing that its lender, Hazel Partners Holdings LLC, has agreed to provide another $69,000 advance to its subsidiary, Subrogation Holdings, LLC.

What Is the Credit Agreement?

The funding comes from a credit agreement originally between Subrogation Holdings, LLC (the borrower), MSP Recovery Claims, Series LLC – Series 15-09-321, MSP Recovery, LLC (the parent), and Hazel Partners Holdings LLC, which acts as both the lender and the administrative agent (the party managing the loan). The agreement has been amended multiple times, most recently in October 2024.

The credit agreement includes a feature called the "Operational Collection Floor Increase," which allows the lender, at its own discretion, to make additional loan advances up to a cap of $6,000,000, to be spread out over three to six months. According to the filing, those discretionary advances have grown well beyond the original $6 million cap through a long series of smaller draws.

A Running List of Draws

According to the filing, Hazel Partners has funded a total of 22 separate draws to Subrogation Holdings since March 2025. The draws ranged from $69,000 to $1,750,000 each. Combined, they total $8,147,500 — the "Aggregate Operational Collection Floor," as the filing calls it.

The most recent draw — $69,000 — was to be made by June 12, 2026, and the filing states it is to be used solely as approved by a majority of the borrower's operating committee members.

In addition to these draws, Hazel Partners also advanced a separate $550,000 to MSP Recovery, LLC on April 10, 2025, specifically to cover legal expenses, according to the filing.

Collateral and Conditions

The filing notes that Hazel Partners is aware that MSP Recovery holds proceeds from property and casualty litigation (referred to as "HC Case Proceeds"), estimated at approximately $1,300,000 in total. Of that, an estimated $605,313 has been pledged as collateral (security for the loan) to Hazel Partners under the credit agreement.

The $69,000 advance was made on the condition that, at the time of funding, no event of default (a serious breach of the loan's terms) would result. The filing makes clear that any future advances remain entirely at Hazel Partners' discretion, and the borrower cannot claim a right to additional funding based on this payment.

The letter was signed by Christopher Guth, Authorised Attorney for Hazel Partners Holdings LLC.

Key facts

MSP Recovery, Inc. (Nasdaq: MSPR) filed an 8-K on June 18, 2026.

Hazel Partners Holdings LLC agreed to advance $69,000 to Subrogation Holdings, LLC by June 12, 2026.

Total cumulative Operational Collection Floor advances across 22 draws now equal $8,147,500.

A separate $550,000 advance was made to MSP Recovery, LLC on April 10, 2025, for legal expenses.

HC Case Proceeds collateral is estimated at approximately $1,300,000; $605,313 has been pledged to the lender.

All future advances remain at the sole discretion of Hazel Partners Holdings LLC.

The credit agreement is the Amendment No. 3 to Second Amended and Restated Credit Agreement, dated October 1, 2024.

Christopher Guth, Authorised Attorney, signed on behalf of Hazel Partners Holdings LLC.

Why it matters

MSP Recovery has now drawn over $8.1 million in incremental operational advances from Hazel Partners — well above the $6 million discretionary cap described in the credit agreement — through a steady stream of small, lender-approved draws stretching back to March 2025. The fact that the company is repeatedly tapping its lender for relatively small amounts (several draws were under $200,000) to fund day-to-day operations, and that a separate $550,000 advance was needed just for legal expenses, suggests ongoing cash pressure. All future funding remains entirely at Hazel Partners' discretion, meaning MSPR has no guaranteed access to additional liquidity under this facility.

Frequently asked

How much has Hazel Partners lent to MSP Recovery's subsidiary in total under this program?

According to the filing, Hazel Partners has made 22 separate advances totaling $8,147,500 to Subrogation Holdings, LLC under the Operational Collection Floor Increase feature of the credit agreement.

What is the $69,000 advance for?

The filing states the $69,000 is to increase the Operational Collection Floor and must be used solely as approved by a majority of the borrower's operating committee members.

Is MSP Recovery guaranteed more funding from Hazel Partners in the future?

No. The filing explicitly states that any additional advances are made at the sole discretion of Hazel Partners, and the borrower cannot claim a right to further payments.

What collateral is securing this loan?

Among the collateral, the filing identifies approximately $605,313 in proceeds from property and casualty litigation (called 'HC Case Proceeds') that have been pledged to Hazel Partners under the credit agreement.

What the filing reported

1.01 Entry into a Material Agreement

2.03 Creation of a Material Financial Obligation

9.01 Financial Statements & Exhibits