Mesoblast Enters into $75m Non-Dilutive Credit Facility

Mesoblast Limited (ASX: MSB; Nasdaq: MESO) today announced that it has entered into a US$75 million non-dilutive, four-year credit facility with Hercules Capital, Inc. (NYSE:HGTC), a leading specialty finance company.

Proceeds will be primarily used towards funding the commercialization of MSC-100-IV (remestemcel-L) after this product candidate successfully met its Phase 3 trial’s primary endpoint of Day 28 overall response in children with steroid refractory acute Graft versus Host Disease (aGVHD).

The facility will also be used for the Company’s additional late stage product candidates: MPC-150-IM in patients with Class II/III advanced chronic heart failure, and in end-stage Class III/IV heart failure patients with left ventricular assist devices (LVADs), and MPC-06-ID in patients with chronic low back pain due to degenerative disc disease.

Mesoblast drew the first tranche of US$35 million on closing. An additional US$15 million may be drawn on or before Q4 CY2018, and a further US$25 million may be drawn on or before Q3 CY2019, in each case as certain milestones are met. Interest on the facility will accrue at a rate of 9.45% per annum with the interest only period lasting up to 30 months upon the satisfaction of certain conditions.


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