By Connor Hart
Shares of MSP Recovery soared after the company agreed to a term sheet outlining several restructuring transactions with Hazel Partners and Virage Capital Management.
The stock doubled to $2.55 in after-hours trading. Through Thursday's close, shares have lost nearly 96% of their value in the past year.
The Medicare, Medicaid, commercial and secondary-payer reimbursement company said that initiatives included in the non-binding agreement will reduce costs, release $1.2 billion in debt and provide funding.
Under the agreement, Hazel would provide up to $25 million in operational funding through a structured facility, paid in monthly batches and subject to meeting certain milestones beginning in September, with a maturity date of June 30, 2027. The firm would additionally provide MSP with up to $9.8 million of bridge funding.
Virage would agree to waive all claims and release all liens against MSP relating to an outstanding loan in exchange for 43% equity interest.
"These transactions represent a critical turning point for MSP Recovery," Chief Executive Officer John Ruiz said. "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.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
April 10, 2025 20:09 ET (00:09 GMT)
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