Mesoblast Secures Option to Raise US$50 million via Convertible Notes

Mesoblast Limited (ASX: MSB) announced it has entered into subscription agreements with key investors, including SurgCenter principals and existing shareholders, to issue up to US$50 million (AU$76.8 million) in unsecured convertible notes at its discretion, subject to shareholder approval . Proceeds will be used to repay or reduce existing secured debt and support working capital. The notes mature five years from issuance and carry a 5% annual coupon. Investors may convert the notes into ordinary shares or ADRs at US$16.25 per ADR (AU$2.50/share), representing a premium of 29% on the last ASX closing price. Investors will also receive warrants—2 million upon signing and a further 3 million if the option is exercised—with a four-year expiry. CEO Silviu Itescu said the deal strengthens Mesoblast’s capital structure while supporting the growth of its advanced allogeneic cell therapy pipeline.

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