Mechel Closes Deal for Refinancing Short-Term Credit Facilities
07/21/2009 - Mechel OAO successfully closes the deal for refinancing the 2.6-billion US dollar short-term credit facilities that were raised to purchase assets in Yakutia and Oriel Resources Ltd.
Mechel OAO has successfully closed the deal for refinancing the 2.6-billion US dollar short-term credit facilities that it had raised to purchase assets in Yakutia and Oriel Resources Ltd.
Mechel had negotiated with syndicates of banks that had provided credit facilities for Mechel’s acquisition of Yakutugol Holding Co. OAO and Elgaugol OAO (October 2007) and Oriel Resources Ltd., Great Britain (April 2008). The negotiations resulted in signing the agreement on refinancing of these facilities in the period of up to 3.5 year on July 10, 2009.
Mechel signed all its refinancing operations documentation, and the bridge loan that was taken for the Oriel Resources acquisition has been fully repaid.
Twenty-seven banks participated in the deal. Gide Loyrette Nouel company served as Mechel’s legal adviser.
Mechel, one of Russia’s leading companies, unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, nickel, hardware, heat, and electric power. Its business includes four segments—mining, steel, ferroalloys and power—and its products are marketed domestically and internationally.
