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Mechel Announces Syndication of Acquisition Refinancing Package
11/07/2007 - Mechel OAO arranges an acquisition refinancing package for its acquisition of the issued share capital of Yakutugol OJSHC, Elgaugol OAO, and the real estate complex of a railway and road from the Zeysk Railway Station to the Elga coal deposits.
Mechel OAO has arranged a US$2-billion Acquisition Refinancing Package to refinance the acquisition of the issued share capital of Yakutugol OJSHC (75% of the statutory issued share capital minus one share), Elgaugol OAO (68.86% of the statutory issued share capital), and the real estate complex of a railway and a road from the Zeysk Railway Station (Far Eastern Railway) to the Elga coal deposits.
The assets were acquired through an auction held on October 5, 2007.
Arranged through several banks, the Acquisition Refinancing Package comprises a Classic Secured 5-year Pre-Export Finance Facility totaling $1.7 billion (85%) and a 3-year Term Loan Facility totaling $300 million (15%).
ABN AMRO, BNP Paribas, Calyon, Natixis, Sumitomo Mitsui Banking Corp. Europe Limited and Societe Generale Corp. & Investment Banking are joint book running managers. They are joined by Commerzbank Aktiengesellschaft to arrange the $2 billion Acquisition Refinancing Package for the company.
Syndication was launched on November 2, 2007 and the banks were invited to participate in the transaction on a take and hold basis. The bank meeting took place in London on November 6, 2007.
Mechel, one of the leading Russian mining and metals companies, unites producers of coal, iron ore, nickel, steel, rolled products, and hardware. Mechel products are marketed domestically and internationally.
