Mechel Reports Successfully Completing Talks on Restructuring 1-Billion-Dollar Syndicated Loan
December 29 2017 - 12:05PM
Mechel PAO (MOEX:MTLR) (NYSE:MTL)
, one of
the leading Russian mining and metals companies, reports successful
completion of talks on restructuring the 1-billion-dollar
syndicated pre-export facility in a bid to further improve the
company’s financial state.
Mechel has obtained the agreement of over 75% by
value and the majority in number of the PXF facilities participants
to implement the restructuring of such facilities. The
restructuring conditions include extending the loan’s final
maturity to the first quarter of 2022 and bringing interest rate
down to the level of LIBOR + 3.5% annual interest (with the
possibility of bringing it further down to LIBOR + 3% annual
interest). The parties plan to sign restructuring documents in the
first quarter of 2018.
Yakutugol Holding Company AO and Southern
Kuzbass Coal Company PAO act as borrowers under the PXF
facilities.
“We are deeply grateful to the syndicate of
international banks that a mutually acceptable decision on
restructuring this loan was found after several years of intensive
negotiations. This level of support — over 75% — is sufficient for
the legal restructuring procedure. However, we will continue our
talks in the hope that soon the restructuring plan will win the
approval of all creditors,” Mechel PAO’s Chief Executive Officer
Oleg Korzhov noted.
Mechel PAOEkaterina VidemanTel: + 7 495 221 88
88ekaterina.videman@mechel.com
Mechel is an international mining and steel
company. Its products are marketed in Europe, Asia, North and South
America, Africa. Mechel unites producers of coal, iron ore
concentrate, steel, rolled products, ferroalloys, heat and electric
power. All of its enterprises work in a single production chain,
from raw materials to high value-added products.
Some of the information in this press release
may contain projections or other forward-looking statements
regarding future events or the future financial performance of
Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to
caution you that these statements are only predictions and that
actual events or results may differ materially. We do not intend to
update these statements. We refer you to the documents Mechel files
from time to time with the U.S. Securities and Exchange Commission,
including our Form 20-F. These documents contain and identify
important factors, including those contained in the section
captioned “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in our Form 20-F, that could cause the
actual results to differ materially from those contained in our
projections or forward-looking statements, including, among others,
the achievement of anticipated levels of profitability, growth,
cost and synergy of our recent acquisitions, the impact of
competitive pricing, the ability to obtain necessary regulatory
approvals and licenses, the impact of developments in the Russian
economic, political and legal environment, volatility in stock
markets or in the price of our shares or ADRs, financial risk
management and the impact of general business and global economic
conditions.
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