Owners of 5 bln rbl bonds of Russia’s Mechel approve restructure

MOSCOW, Jul 8 (PRIME) -- Holders of the fourth series of 5 billion ruble bonds of Russian metals and mining group Mechel have approved their restructuring, the company said in a statement Friday following a meeting of the bondholders.

The new parameters of the bonds include a delay of maturity and quarterly gradual amortization of the debt until 2021 and a coupon rate calculated as an arithmetic average between the central bank’s key rate plus 2.5 percentage points and a fixed rate for every year, implying a gradual decrease of the coupon by 1 percentage point per year to 9.0% from 13.0%, the company said.

VTB Capital, Gazprombank and Sviaz-Bank acted as restructuring agents.

Mechel placed the 7-year bonds in July 2009. The first through twelfth coupons were set at 19% and of the thirteenth through sixteenth coupons at 11.25%. The issue carried a 3-year and a 4-year buyback offers.

(64.1509 rubles – U.S. $1)

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