Mesoblast and Oaktree Capital complete refinancing and expansion of senior credit facility

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NEW YORK, November 21, 2021 (GLOBE NEWSWIRE) – Limited mesoblast (Nasdaq: MESO; ASX: MSB), a global leader in allogeneic cellular drugs for inflammatory diseases, today announced that it has successfully refinanced its existing senior debt facility with a new five-year $ 90 million facility provided by funds managed by Oaktree Capital Management, LP (“Oak”).

Mesoblast drew the first tranche of US $ 60 million at closing, with the 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 can be drawn. no later than December 31, 2022, subject to certain milestones. The facility has an interest period of three years, at a rate of 9.75% per annum, after which 40% of the principal is amortized over two years and a final payment is due in November 2026. Oaktree will also receive bonds. subscription to buy 1,769,669 American Depositary Shares (ADS)1 at US $ 7.26 per ADS, a 15% premium over the 30-day VWAP. The warrants can be exercised within 7 years of their issue.

“We are delighted to have Oaktree, a leading global investment management firm, as a new funding partner as we focus on bringing our first product to the US market. Oaktree has a demonstrated partnership approach with innovative companies, which makes it an excellent choice to support Mesoblast’s business growth strategy over the next five years, ”said Silviu Itescu, Managing Director of Mesoblast.

Aman Kumar, Co-Portfolio Manager of Life Sciences Loans at Oaktree, said: “We are delighted to partner with Mesoblast at this stage of its development. We recognize the quality of the portfolio and the near-term milestones that could help the company successfully market its first product in the United States.

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

About the mesoblast
Mesoblast is a world leader in the development of allogeneic (ready-to-use) cellular drugs for the treatment of serious and life-threatening inflammatory conditions. The Company has leveraged its proprietary mesenchymal lineage cell therapy technology platform to establish a broad portfolio of late stage product candidates that respond to severe inflammation by releasing anti-inflammatory factors that counteract and modulate multiple effector arms. of the immune system, resulting in a significant reduction in the damaging inflammatory process.

Mesoblast has a strong and extensive global intellectual property portfolio with protection extending to at least 2041 in all major markets. The Company’s proprietary manufacturing processes produce cryopreserved and ready-to-use cellular drugs on an industrial scale. These cell therapies, with defined pharmaceutical release criteria, should be readily available to patients around the world.

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 for inflammatory diseases in children and adults, including acute steroid refractory graft versus host disease and moderate to severe acute respiratory distress syndrome. Rexlemestrocel-L is in development for advanced chronic heart failure and chronic low back pain. Two products have been marketed in Japan and Europe by the licensees of Mesoblast, and the Company has established commercial partnerships in Europe and China for certain Phase 3 assets.

Mesoblast has offices in Australia, the United States and Singapore and is listed on the Australian Securities Exchange (MSB) and the Nasdaq (MESO). For more information, please visit www.mesoblast.com, 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 company emphasizes an opportunistic, value-driven and risk-based approach controlled for investments in credit, private equity, real estate assets and listed equities. The company has more than 1,000 employees and offices in 19 cities around the world. For more information, please visit the Oaktree website at http://www.oaktreecapital.com/.

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 results, levels of activity, actual performance or achievements differ materially from any future results. , activity levels, performances or achievements expressed or implied by these forward-looking statements. We make such forward-looking statements in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements should not be interpreted as a guarantee of future performance or results, and actual results may differ from the results anticipated in such forward-looking statements, and the differences may be material and adverse. Forward-looking statements include, without limitation, statements regarding: Mesoblast’s ability to meet the conditions and milestones necessary to tap into the facility; the initiation, timing, progress and results of Mesoblast’s preclinical and clinical studies, and Mesoblast’s research and development programs; Mesoblast’s ability to advance product candidates, enroll and complete clinical studies, including multinational clinical trials; Mesoblast’s ability to advance its manufacturing capabilities; the timing or likelihood of regulatory filings and approvals, manufacturing activities and product marketing activities, if any; marketing of Mesoblast’s product candidates, if approved; regulatory or public perceptions and market acceptance regarding the use of stem cell therapies; the possibility that Mesoblast’s product candidates, if any, will be withdrawn from the market due to adverse events or patient deaths; the potential benefits of strategic collaboration agreements and Mesoblast’s ability to enter into and maintain established strategic collaborations; Mesoblast’s ability to establish and maintain intellectual property in its product candidates and Mesoblast’s ability to successfully defend them in cases of suspected infringement; the extent of protection Mesoblast is able to establish and maintain for intellectual property rights covering its product candidates and technology; Mesoblast’s expense estimates, future revenues, capital requirements, and its additional funding needs; the financial performance of Mesoblast; developments relating to Mesoblast’s competitors and industry; and pricing and reimbursement of Mesoblast product candidates, if approved. You should read this press release, along with our risk factors, in our latest reports filed with the SEC or on our website. The uncertainties and risks which may cause Mesoblast’s actual results, performance or achievements to differ materially from those which may be expressed or implied by such statements, and therefore, you should not place undue reliance on such statements prospective. We assume no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Release authorized by the general manager.

For more information please contact:

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

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