Moscow, Russia– December 20, 2013 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces signing agreements with Sberbank of Russia on restructuring a part of Mechel OAO’s debt to the bank (25.5 billion rubles, approximately 773 million US dollars*). The Group’s obligations to the bank are extended by 5 years, with a grace period until the first quarter of 2015.
The conditions of this restructuring stipulate refinancing of Mechel Group’s existing debt to Sberbank of Russia for a total of 25.5 billion rubles. The restructuring involves the Group’s short-term debt to Sberbank of Russia, whose maturity fell on December 2013 – December 2014. This restructuring concerns only the Group’s existing debt and will not increase Mechel Group’s total debt portfolio.
“Sberbank of Russia is Mechel’s longstanding strategic partner, and this approval is yet another proof of our successful cooperation. We are grateful to Sberbank for their trust and support. Reaching this agreement together with our creditors’, including Sberbank’s, approval of covenant holidays enabled us to completely stabilize our company’s financial situation,” Chairman of Mechel OAO’s Board of Directors Igor Zyuzin noted.
* Based upon the Russian Central Bank exchange rate of 32.95 RUR/$ as of December 20, 2013
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