Mechel Finalizes Negotiations on USD 1 bln Loan Agreement
OREANDA-NEWS. Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces reaching agreement to extend the grace period and maturity of its USD 1 billion syndicated facility to the end of 2014 and 2016 respectively.
The process was coordinated by ING Bank N.V., Societe Generale and VTB Capital.
The agreement was signed on behalf of a syndicate of leading international banks, including ABN Amro, BNP Paribas, Caterpillar Financial Services Corporation, Commerzbank Aktiengesellschaft, ICBC (London) plc., ING Bank N.V., Natixis, Raiffeissen Bank International AG, Societe Generale, UniCredit, VTB.
The borrowers under the agreement are Mechel's main mining division enterprises - Yakutugol Holding Company OAO and Southern Kuzbass Coal Company OAO.
“The agreement reached with our international syndicate will ensure Mechel a more stable financial environment, allowing us to continue our financial strategy of lengthening the maturity profile of our debt portfolio and reducing leverage through the disposal of non-core assets. This will enable us to successfully pass the commodity price depression. Additionally, it will greatly ease the pressure on Mechel's cashflow in the next 12 months, moving approximately USD 600 million of repayments from 2013-2014 to 2015-2016” Mechel OAO's Chief Financial Officer Stanislav Ploschenko said.