Mechel Announces Signing Loan Agreements With Gazprombank
MOSCOW, April 29, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the
leading Russian mining and metals companies, announces signing several loan
agreements with Gazprombank OAO totaling 1 billion US dollars.
Mechel OAO's largest enterprises acted as borrowers.
In the steel division, Beloretsk Metallurgical Plant signed a loan agreement
for 1.7 billion rubles (some 54 million US dollars*) and Urals Stampings Plant
signed another for 1.6 billion rubles (some 50 million US dollars*). For the
steelmaker the credit lines can be used with the possibility of drawing down
funds during a three-year period. The maximum period for each tranche is two
years with repayment at the end of such period.
In the mining division, Yakutugol Holding Company signed a loan agreement for
490 million US dollars and Southern Kuzbass Coal Company for 400 million US
dollars. For the mining enterprises, the credit lines with the possibility of
drawing down funds can be used for a one-year period, with a five-year
repayment period for each tranche. The loans have a three-year grace period
and repayment in equal quarterly installments over the last two years.
"Gazprombank is an important strategic partner for Mechel, and this deal is
yet another proof of our long-term and mutually profitable cooperation. I
would like to specifically note that opening these credit lines will not
increase our company's leverage while significantly decreasing the pressure on
our liquidity this year, and will enable us to improve the Group's loan
portfolio structure by increasing the period of repaying loans," Mechel OAO's
Chief Financial Officer Stanislav Ploschenko noted.
*Based upon the Russian Central Bank exchange rate of 31.22 RUR/$ as of April
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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