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Mechel Reports Successfully Completing Talks on Restructuring 1-Billion-Dollar Syndicated Loan 29.12.2017

Mechel Reports Successfully Completing Talks on Restructuring 1-Billion-Dollar Syndicated Loan

Mechel PAO 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.

By Mechel PAO.


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