Source: Russia’s Mechel offers restructuring of 15 bln rbl bonds

MOSCOW, May 11 (PRIME) -- Russian metals and mining group Mechel has submitted conditions of restructuring to holders of bonds of the 17th, 18th and 19th series with combined amount of 15 billion rubles, a banking source told PRIME on Wednesday.

The amount of bonds in circulation is about 9.3 billion rubles. The company plans to keep the maturity date of June 2021, but wants to change the coupon to the central bank’s key rate plus 2.5% fixed for every year, which implies a gradual annual decrease of the rate by 1 percentage point to 9.5% from 13.5%. Currently, the coupon rate is set at 8.4%.

The restructuring conditions also envisage debt amortization of 3.5% of the bonds’ face value in April–June and July–September 2016, of 4% in October–December 2016 and in January–March 2017, and of 5% every quarter from April–June 2017 until April–June 2021.

The restructuring should be supported by 75% of bond holders at a general meeting on June 2. Representatives for bond holders are to be chosen at a meeting on May 25. VTB Capital, Gazprombank and Sviaz-Bank act as agents of the restructuring deal.

(66.3277 rubles – U.S. $1)

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