Mesoblast Draws US$50 Million Five-Year, 8% Facility to Retire High-Cost Debt
MESO•Mesoblast drew US$50 million from a five-year facility with an 8% fixed interest rate secured solely by its Temcell royalty and repayable without prepayment fees. The company held US$122 million cash at March 30, 2026 and will retire its higher-cost NovaQuest short-term debt to optimize its capital structure.
1. Facility Drawdown and Terms
Mesoblast drew US$50 million from a five-year, 8% fixed-rate facility provided by existing shareholder and director Dr. Gregory George. The credit line features an interest-only period through maturity, is secured solely by the Temcell royalty, and can be repaid at any time without prepayment or exit fees.
2. Capital Structure Optimization
The proceeds will retire Mesoblast’s higher-cost NovaQuest Capital short-term debt, eliminating immediate maturities. With US$122 million cash on hand at March 30, 2026, the company strengthens its balance sheet without encumbering core assets or intellectual property, supporting ongoing commercial operations and its growth pipeline.
