By Susanna Moon
Chicago, June 8 - Mechel OAO said it closed RUB 10 billion of its series 17 and series 18 interest-bearing commercial paper Wednesday with a coupon of 8.4%.
The paper matures in 10 years and has a put option in five years.
The paper will be placed on the Micex Stock Exchange ZAO on June 9, with Coalmetbank OAO as placement agent.
VTB Capital ZAO, Sberbank OAO and Coalmetbank OAO are the managers.
"Good conditions on the Russian bond market allowed Mechel to successfully place papers with the five-year put option at the lower boundary of the price range with the book oversubscribed over 2 times. Considering the investors' interest and high liquidity we decided to increase the volume of commercial papers to be placed," Stanislav Ploschenko, Mechel's chief financial officer, said in a press release.
"We plan to make an additional placement of the 19 series with the total nominal value of 5 billion rubles with a five-year put option. The books will be closing at the end of business on June 9, 2011. The funds will be used to refinance our current short-term debt. Mechel's total debt will not increase."
Mechel is a Moscow mining and steel company.
| Issuer: | Mechel OAO
|
| Amount: | RUB 10 billion
|
| Issue: | Inconvertible bonds
|
| Term: | 10 years
|
| Managers: | VTB Capital ZAO, Sberbank OAO, Coalmetbank OAO
|
| Coupon: | 8.4%
|
| Price: | Par
|
| Yield: | 8.4%
|
| Put: | In five years
|
| Settlement date: | June 8
|
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