Corporate Finance
MSP Recovery Reports Hazel and VRM One-Time Advances
MSP Recovery disclosed two standalone advances from Hazel Partners Holdings and two one-time advances of recovery proceeds from VRM MSP Recovery Partners.
By Carter Hayes ·
Key takeaways
- Hazel, acting as administrative agent and lender under MSP Recovery’s working-capital credit facility, agreed to two one-time advances primarily for operating expenses.
- The Hazel advances were funded on August 6, 2026, and August 13, 2026, subject to stated conditions.
- MSP Recovery said the Hazel advances do not restore availability under the working-capital credit facility or its Operational Collection Floor.
- VRM’s two advances of recovery proceeds are designated exclusively for payroll and certain information-technology expenses and do not require further advances from VRM.
Hazel advances under existing credit facility
MSP Recovery said its subsidiaries entered into letter agreements with Hazel Partners Holdings on August 4 and August 13, 2026. Hazel acted as administrative agent and lender under the company’s existing working-capital credit facility.
The agreements provide for two one-time advances intended primarily for operating expenses. MSP Recovery reported that the advances were funded on August 6 and August 13, respectively, subject to conditions in the letter agreements and underlying credit agreement, including the absence of a default at funding.
The company said advances through the facility’s Operational Collection Floor are solely at Hazel’s discretion and are not subject to a commitment or minimum availability. It also said the facility does not establish a borrowing base or obligate Hazel to fund amounts.
No additional facility availability described
MSP Recovery characterized the Hazel advances as standalone accommodations. The company said they do not reinstate, replenish or reopen availability under the working-capital credit facility or the Operational Collection Floor.
Other than the specified Hazel advances, MSP Recovery said no additional funding was currently available under the facility. The company also said it had no rights to, or reasonable basis to expect, further advances under the facility.
The letter agreements do not change the facility’s discretionary nature, create a future funding commitment or provide access to ongoing or recurring liquidity, according to the filing.
VRM recovery-proceeds advances
MSP Recovery also entered into addenda with VRM MSP Recovery Partners on August 4 and August 11, 2026. Each addendum made available a one-time advance of recovery proceeds.
The company reported that the two VRM advances were funded on August 3 and August 12, respectively. The advances are to be used exclusively for payroll and certain information-technology expenses.
MSP Recovery said the VRM addenda do not imply an obligation for VRM to provide further advances. VRM reserved its rights under the applicable limited liability company agreement and related documents.