By Susanna Moon
Chicago, Nov. 16 - Mechel OAO said it completed the initial placement of stock secured non-convertible interest-bearing documentary bonds for RUB 5 billion.
The BO-01 series priced at par with a coupon of 12½%.
Svyaz Bank AB OAO and Uglemetbank OAO are placement managers.
"Unlike the ordinary bonds whose last issue was placed at the end of October 2009 to provide financing for Elga coal deposit development, this stock bonds were issued only in order to optimize Mechel Group's debt portfolio," S.A. Ploshchenko, Mechel's chief financial officer, said in a press release.
"Following successful placing of the previous bonds series, Mechel together with its bonds placement managers made good use of the market interest to Mechel OAO borrowings in the open market. This will allow us to repay more expensive bank loans, raised at the end of the last year and the beginning of the current year."
Mechel is a Moscow mining and steel company.
| Issuer: | Mechel OAO
|
| Amount: | RUB 5 billion
|
| Issue: | Stock secured non-convertible interest-bearing documentary bonds
|
| Managers: | Svyaz Bank AB OAO, Uglemetbank OAO
|
| Coupon: | 12½%
|
| Price: | Par
|
| Yield: | 12½%
|
| Put option: | Yes
|
| Placement date: | Nov. 13
|
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