MSP Recovery Unleashing $1.2B Debt Slash with Hazel & Virage
DENVER, Colo., Apr 11, 2025 (247marketnews.com)- MSP Recovery (NASDAQ:MSPR) signed a strategic term sheet with Hazel Partners Holdings and Virage Capital Management, slashing over $1.2 billion in corporate guaranteed debt and igniting a $34.75 million cash infusion. The deal is set to close by April 30, pending regulatory approval.
MSPR’s pulling no punches: $9.75 million in bridge funding, with $6.5 million still up for grabs through July 2025, lands from Hazel under the Operational Collection Floor facility, topping it at $25.75 million. Add $25 million for a New Servicer subsidiary, funded in $1.75 million monthly tranches from September 2025, and MSPR’s turbocharging its MSP Laws recovery engine.
John H. Ruiz, MSP Recovery’s Founder and CEO, commented, “These transactions represent a critical turning point for MSP Recovery. By aligning with strategic partners and securing operational funding, we believe we have established a foundation that not only addresses past challenges but positions us for long-term growth. The Company appreciates the continued partnership and collaborative approach of its various partners.”
The debt dump is colossal, as Virage waives $1.2 billion in liens for a 43% equity stake, while MSP Principals John H. Ruiz and Frank C. Quesada convert $144 million into stock. Yorkville extends deadlines to November 30, 2026, unshackling stock sales under its SEPA. Hazel’s $100 million guaranty holds, but IP’s off-limits, with a $235 million SOFR+10% pledge on New Servicer equity.
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