BUSINESS: Mesoblast & Oaktree Capital Enter Into Refinancing & Expansion Of Senior Debt Facility

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by Daniel Webster, dWeb.News Publisher

November 21, 2021 19: 31 ET | Source: Mesoblast Limited

NEW YORK, Nov. 21, 2021 (GLOBE NEWSWIRE) — Mesoblast Limited (Nasdaq:MESO; ASX:MSB), global leader in allogeneic cellular medicines for inflammatory diseases, today announced that it has successfully refinanced its existing senior debt facility with a new US$90 million five year facility provided by funds managed by Oaktree Capital Management, L.P. (“Oaktree”).

Mesoblast drew the first tranche of US$60 million on closing, with proceeds being used to repay the outstanding balance of the existing senior debt facility with Hercules Capital, Inc. Up to an additional US$30 million may be drawn on or before December 31, 2022, subject to certain milestones. A three-year interest-only period is provided at a rate 9. 75% per annum, after which time 40% of the principal amortizes over two years and a final payment due November 2026. Oaktree will also receive warrants to purchase 1,769,669 American Depositary Shares (ADSs)1 at US$7. 26 per ADS, a 15% premium to the 30-day VWAP. You can exercise warrants within seven years from the date of issue.

“We are pleased to have leading global investment management firm Oaktree as our new financing partner as we focus on bringing our first product to the US market. Oaktree is a proven partner to innovative companies and Mesoblast’s commercial growth strategy for the next five years.” Silviu Itescu, Chief Executive at Mesoblast, said.

Aman Kumar, Co-Portfolio Manager of Life Sciences Lending at Oaktree said, “We are delighted to partner with Mesoblast at this point in its development. We recognize the quality of the portfolio and the significant near-term milestones that could help the company successfully commercialize its first product in the US.”

Cantor Fitzgerald & Co. acted as exclusive arranger and financial advisor to Mesoblast in this transaction.

About Mesoblast
Mesoblast is a world leader in developing allogeneic (off-the-shelf) cellular medicines for the treatment of severe and life-threatening inflammatory conditions. The Company’s proprietary mesenchymal-lineage cell therapy platform has allowed it to create a wide range of late-stage product candidates that respond to severe inflammation. These products release anti-inflammatory substances which counter and modulate multiple immune systems, leading to significant decreases in the harmful inflammatory process.

Mesoblast has a strong and extensive global intellectual property portfolio with protection extending through to at least 2041 in all major markets. The Company’s proprietary manufacturing process produces industrial-scale, cryopreserved, off the shelf, cellular medicines. These cell therapies are expected to be available for patients around the world with defined release criteria.

Mesoblast is developing product candidates for distinct indications based on its remestemcel-L and rexlemestrocel-L stromal cell technology platforms. Remestemcel L is being developed to treat inflammatory conditions in children and adults, including severe and refractory acute and chronic graft-versus-host disease. Rexlemestrocel L is being developed for chronic low back pain and advanced chronic heart disease. Mesoblast licensees have already made two products available in Japan and Europe. The Company also has commercial partnerships in Europe, China and Asia for certain Phase 3 assets.

Mesoblast has locations in Australia, the United States and Singapore and is listed on the Australian Securities Exchange (MSB) and on the Nasdaq (MESO). For more information, please see, LinkedIn: Mesoblast Limited and Twitter: @Mesoblast

About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with $158 billion in assets under management as of September 30, 2021. The firm focuses on a value-oriented, opportunistic and risk-controlled approach to investing in credit, real assets, and listed equities. The firm has over 1,000 employees and offices in 19 cities worldwide. For additional information, please visit Oaktree’s website at

Forward-Looking Statements
This press release includes forward-looking statements that relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. We make such forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements are not intended to be a guarantee of future performance and results. Actual results could differ materially from those anticipated by forward-looking statements. Forward-looking statements include statements regarding Mesoblast’s ability and timeline to draw down the facility, Mesoblast’s ability and potential benefits from its preclinical and/or clinical studies and Mesoblast’s research and development program; Mesoblast’s ability and ability to enroll in and complete clinical trials, as well as Mesoblast’s ability and ability to defend these in the event of alleged infringement; Mesoblast’s financial performance, Mesoblast’s capital requirements, future revenues and Mesoblast’s competitors, industry developments; and pricing and reimbursement for Mesoblast’s product candidate, if they are approved. This press release should be read in conjunction with our risk factors. There are uncertainties and risks that could cause Mesoblast’s actual results or performance to differ from the statements. You should not rely on forward-looking statements. We are not obligated to update or revise any forward looking statements whether they result from new information, future developments, or any other reason.

Release authorized by the Chief Executive.

For more information, please contact:

1 The warrants will be issued under a prospectus to be lodged with ASIC under which the warrants will be offered to Oaktree. The agreement to issue the warrants is subject to approval of Mesoblast shareholders if required at the time of issue for the purposes of the 15% placement limit in Listing Rule 7.1.

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