Mechel Reports Restructuring Public Debt on 13 and 14-Series Bonds

The bondholders have approved by absentee ballot the new restructuring parameters for the 13th and 14th series bonds (state number 4-13-55005-E dated 10.08.2010 and state number 4-14-55005-E dated 10.08.2010 respectively). Of those participating, 82 % of holders of the 13th series and 79 % of holders of the 14th series voted in favor of the offered conditions.

According to the restructuring conditions, the bonds’ nominal value will be partly repaid during four years at the dates set for the end of 13-19 coupon periods. The interest rate will be calculated as a simple average between the Bank of Russia’s key rate plus 4% and the fixed coupon for each year.

10% of the bonds will be bought back as part of the offer on September 28, 2015. Another 10% will be bought back by the issuer as part of the offer within a year – 5% on March 1 and 5% on August 30, 2016.

VTB Capital AO acted as the company’s agent for the bonds’ restructuring.

Legal firm LECAP advised the company as a legal consultant, while Legal Capital Investor Services will run the restructuring as an approved bondholders’ representative.