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)
Copyright (c) 2025 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。