Mesoblast (ASX:MSB) said it drew down $50 million from a five-year facility provided by Gregory George, a shareholder and director of the company, according to a Thursday filing with the Australian bourse.

The credit line carries a fixed interest rate of 8% per year, which marks "a substantial reduction" from prior facilities, the company said.

Mesoblast had $122 million of cash at the end of March and "is well funded to invest in its commercial operations and growth pipeline," it said.

The company's shares fell nearly 2% in recent Thursday trade.