Core Viewpoint - MSP Recovery, Inc. has entered into a non-binding term sheet for a new secured term loan facility of up to $55 million to enhance working capital and operational funding for future growth [1] Group 1: Loan Facility Details - The term sheet outlines a potential first lien secured delayed draw term loan facility with a principal amount of up to $55 million, maturing 36 months after closing, with two possible one-year extensions [2] - The obligations will be secured by a first-priority security interest in substantially all assets, subject to inter-creditor arrangements with existing creditors [2] Group 2: Warrant Issuance - In connection with the loan advances, the company will issue warrants to purchase shares of its Class A common stock, with an exercise price of $0.01 per share and a term of ten years [3] - Warrant coverage ranges from 3.0% per $1.0 million drawn under the initial portion of Tranche A to 0.35% per $1.0 million drawn under later portions of Tranche B, with a maximum potential coverage of approximately 46.0% on a fully diluted basis if fully drawn [3] Group 3: Additional Terms and Conditions - The term sheet includes customary fees, financial reporting requirements, oversight, and approval rights for the lender, as well as the potential appointment of a Chief Restructuring Officer [4] - Certain extensions of credit and warrant issuances may require shareholder approval under applicable Nasdaq rules [4] Group 4: Company Vision and Strategy - The CEO of MSP Recovery stated that the transactions would facilitate a capital infusion and create strategic alignment with partners who share the company's long-term vision [5] - The company remains committed to optimizing its capital structure and pursuing justice for healthcare clients through ongoing litigation strategies [5] Group 5: Company Background - MSP Recovery, founded in 2014, is a leader in Medicare, Medicaid, and commercial reimbursement recovery, utilizing data-driven solutions to secure recoveries from responsible parties [6]