New facility does not encumber any of Mesoblast's material assets or intellectual property
NEW YORK, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Mesoblast Limited (NASDAQ:MESO, ASX:MSB)), global leader in allogeneic cellular medicines for inflammatory diseases, today announced that it has repaid in full its existing senior secured loan from Oaktree Capital Management, Inc. and in part its subordinated royalty facility from NovaQuest Capital Management LLC by drawing down US$75 million from a new five-year facility provided by existing Mesoblast shareholder and director Dr Gregory George. A second tranche of up to US$50 million is available to be drawn at Mesoblast's option until June 30, 2026.
The new credit-line has a fixed interest rate of 8.00% per annum, a substantial reduction from Mesoblast's current debt facilities, with a five-year interest only period. The initial US$75 million drawn is unsecured until the remainder of the NovaQuest debt is repaid, no later than July 8, 2026, after which the entire new facility (up to US$125 million) will be secured solely with the Temcell1 royalty.
The new facility has a substantially lower overall cost compared with existing facilities, can be repaid at any time without incurring early prepayment or make-whole fees, does not include exit fees, does not encumber any of Mesoblast's material assets or intellectual property, and has no restrictions on additional unsecured debt or licensing activities. Dr. George will receive 5-year warrants to purchase approximately 323,000 American Depositary Shares (ADSs) at US$21.51 per ADS2, a 15% premium to the current 30-day VWAP, subject to shareholder approval.
Mesoblast Chief Executive Dr. Silviu Itescu said "We greatly appreciate the support of our largest shareholder who provided the most commercially compelling facility in a competitive process run over the course of this year. This facility substantially lowers the company's cost of capital and frees up all of our major assets to provide total flexibility for strategic partnerships and commercialization."
About Mesoblast Mesoblast (the Company) is a world leader in developing allogeneic (off-the-shelf) cellular medicines for the treatment of severe and life-threatening inflammatory conditions. The therapies from the Company's proprietary mesenchymal lineage cell therapy technology platform respond to severe inflammation by releasing anti-inflammatory factors that counter and modulate multiple effector arms of the immune system, resulting in significant reduction of the damaging ...
