Russia’s Mechel holders vote to restructure, extend series 4 bonds

By Susanna Moon

Chicago, July 8 – Mechel PAO obtained holder approval to restructure its series 04 bonds at a meeting held Thursday, according to a 6-K filing with the Securities and Exchange Commission.

The approved terms included the extension of the maturity up to 2021, quarterly amortization of debt until 2021 and the coupon rate set at the average between the Central Bank of Russia’s key rate plus 250 basis points and a fixed rate determined for each year with an annual drop by 100 bps to 9% from 13%, the filing noted.

Bondholders approved the new restructuring terms by absentee ballot of 99.3% of votes cast.

The meeting was announced June 21.

Before that, on June 6, the company said it received bondholder approval to restructure its series 17, 18 and 19 bonds, including amortization of debt until 2021. The bonds’ coupon is now the average between the Central Bank of Russia’s key rate plus 250 bps and a fixed figure that will decrease each year by 100 bps from 13.5% to 9.5%.

VTB Capital AO (bonds@vtbcapital.com), Gazprombank AO (bondsbook@gazprombank.ru) and Svyaz-Bank AKB PAO (bonds@sviaz-bank.ru) are acting as the company's restructuring agents.

Mechel is a mining and steel company based in Moscow.

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