By Reshmi Basu
New York, June 21 - Steel producer Mechel OAO placed 5 billion rubles of interest-bearing inconvertible bonds with the Moscow Interbank Currency Exchange (Micex).
The series 02 bonds will carry a maturity of seven years. The issue priced at par with a coupon of 8.40%. Bids ranged from 7.95% to 8.65%.
The bonds will have 14 coupon payments. The coupon will be 8.40% for the first eight payments. Afterwards Mechel will determine the remaining coupon rate. Additionally, the issuer has an option for early redemption after four years.
The issuer saw 5.44 billion rubles in demand. Additionally, the issue was fully subscribed on the first day of placement.
Funds from the sale will used to refinance debt and to finance the long-term investment programs of the company's subsidiaries.
Issuer: | Mechel OAO
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Amount: | 5 billion rubles
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Issue: | Interest-bearing inconvertible bonds
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Maturity: | Seven years
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Coupon: | 8.40%
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Issue price: | Par
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Placement date: | June 21
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