Metals Exploration (LSE:MTL)
Historical Stock Chart

From Dec 2019 to Dec 2024

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