Mesoblast (ASX:MSB), a global leader in allogeneic cellular medicines for inflammatory diseases, has repaid its senior secured loan from Oaktree Capital Management and partially settled its subordinated royalty facility with NovaQuest Capital Management by drawing US$75 million from a new five-year credit facility provided by shareholder and director Dr. Gregory George.
The company may draw an additional US$50 million under the facility until June 30, 2026. The credit line carries a fixed 8% interest rate, significantly lower than existing debt, and offers an initial interest-only period of five years.
Unlike previous facilities, it does not encumber Mesoblast's major assets or intellectual property and imposes no restrictions on additional unsecured debt or licensing activities.