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News  ›  GlobeNewswire Inc.

Mesoblast Retires Senior Debt with Non-Dilutive, Lower Cost, Five-Year Credit Line

GlobeNewswire Inc. Logo GlobeNewswire Inc. By Na
Mesoblast Retires Senior Debt with Non-Dilutive, Lower Cost, Five-Year Credit Line

Mesoblast Limited announced it has repaid its senior secured loan from Oaktree Capital Management and partially repaid its subordinated royalty facility from NovaQuest Capital Management by drawing US$75 million from a new five-year facility provided by shareholder Dr Gregory George. The company has an option to draw an additional US$50 million by June 30, 2026. The new facility features a fixed 8.00% interest rate (lower than existing debt), no early prepayment fees, and does not encumber material assets or intellectual property.

Insights
MESO   positive

The company successfully refinanced its debt at a substantially lower interest rate (8.00% vs. higher existing rates), eliminated early prepayment penalties, freed up major assets for strategic partnerships, and secured additional capital flexibility with an option to draw up to US$50 million more. These are favorable financial developments that improve the company's capital structure and operational flexibility.