Mechel holders vote to restructure series 17, 18, 19 bonds issued 2010

By Susanna Moon

Chicago, June 6 – Mechel PAO said it received approval by absentee ballot to restructure its series 17, 18 and 19 bonds, with more than 75% of votes cast in favor of the measure.

The approved parameters included amortization of debt until 2021 and the coupon rate as the average between the Central Bank of Russia’s key rate plus 250 basis points and a fixed amount set for each year with an annual drop by 100 bps from 13˝% to 9˝%, according to a company update.

“The conditions approved by bondholders enable us to have a debt repayment schedule without a significant outflow from the group’s operational cash flow,” Mechel’s chief executive officer. Oleg Korzhov, said in the release.

As announced May 5, Mechel was offering to make changes to the payment schedule and to reconsider the order of determining the coupon rate for future periods.

VTB Capital AO, Gazprombank (AO) and Svyaz-Bank AKB PAO are the restructuring agents.

The bond issues are dated Aug. 10, 2010.

Mechel is a Moscow-based mining, metals and power company.

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