Mechel OAO Announces Early Redemption of Stock Bonds at Total Sum of 5 Billion
MOSCOW, March 28, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the
leading Russian mining and metals companies, announces its decision to make an
early redemption of its 05 series bonds.
On March 27, 2013 Mechel OAO decided on early redemption of its 05 series
non-convertible interest-bearing documentary bonds (ID serial numbers
4-05-55005-Е), placed on October 20, 2009, as well as to pay the accumulated
coupon interest for the 14 coupon period.
The redeemed bonds have a total nominal value of 5.0 billion rubles. Maturity
falls 3 276 days after placement date (October 9, 2018).
Early redemption of these bonds will be made on April 16, 2013. Coalmetbank
OAO will act as the payment agent for the bonds' early redemption.
"Optimizing our debt level and maintaining responsible policies toward our
investors are currently a top priority for Mechel. With highly volatile
financial markets, the company chooses financing instruments that enable us to
lengthen the duration of its debt portfolio while minimizing loan costs. We
have implemented a series of measures to this end, and managed to achieve good
results. As of now, we think that the interest as reflected by the market for
our bonds does not entirely accurately reflect our credit risk, so we decided
to redeem these bonds early, using loaned funds," Mechel OAO's Chief Financial
Officer Stanislav Ploschenko noted.
Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of
coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled
products, hardware, heat and electric power. Mechel products are marketed
domestically and internationally.
Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you
to the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
"Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in
our Form 20-F, that could cause the actual results to differ materially from
those contained in our projections or forward-looking statements, including,
among others, the achievement of anticipated levels of profitability, growth,
cost and synergy of our recent acquisitions, the impact of competitive
pricing, the ability to obtain necessary regulatory approvals and licenses,
the impact of developments in the Russian economic, political and legal
environment, volatility in stock markets or in the price of our shares or
ADRs, financial risk management and the impact of general business and global
CONTACT: Mechel OAO
Tel: + 7 495 221 88 88
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