The default is subject to milestones not met by the 30th of...

The default is subject to milestones not met by the 30th of September, see below.

Mesoblast (MSB) has extended the availability of the final US$30 million (A$44.9 million) facility managed by Oaktree Capital Management.

The extended facility is part of its US$90 million five-year facility, subject to achieving certain milestones before September 30, 2023.

The company’s final payment is due in November 2026.

Mesoblast withdrew its first tranche of US$60 million in November 2021.

The facility has a three-year interest only period, at a rate of 9.75 per cent per annum, after which time 40 per cent of the principal amortises over two years.

In return for the milestone extension period, Oaktree will receive warrants to purchase 455,000 American depositary shares (ADS) at US$3.70 per ADS, a 15 per cent premium to the 30-day volume-weighted average price.

The warrants may be exercised within seven years of issuance.