Mechel Agrees To Restructure $2.6 Billion In Debts
13 July 2009 - 7:33PM
Dow Jones News
Russian steel and coal group OAO Mechel (MTL) Monday said it has
signed agreements to refinance $2.6 billion in short-term credit
facilities raised to purchase Oriel Resources Ltd. and assets in
Yakutia.
New-York listed Mechel said Friday it plans to sign a deal in
the coming days to restructure $3.5 billion of its $5.8 billion in
debt. It said in June that it wouldn't be able to survive unless
its creditors agreed to restructure its loans.
"I would like to emphasize that as a result of refinancing these
credits the short-term debt of the company of $2.6 billion will be
again reclassified as long-term debt," Mechel Chief Financial
Officer Stanislav Ploschenko said of Monday's agreements, which
cover the acquisitions of Oriel and Yakutia-based coal producers
OAO Yakutugol and OAO Elgaugol.
Mechel refinanced $1.6 billion of the $2 billion Yakutia loan at
Libor plus 6%, extending the maturity to December 2012. It paid the
remaining $400 million with its own funds.
The company refinanced $1 billion of the $1.5 billion Oriel
facility at Libor plus 7%, also extending the maturity to December
2012. It paid the remaining $500 million using a three-year loan
from Gazprombank.
Company Web site: www.mechel.com
-By Andrew Langley, Dow Jones Newswires; +7 495 937 8445;
andrew.langley@dowjones.com