Mechel refinances $ 1.2 billion loan

The metallurgical company Mechel of Igor Zyuzin refinanced 40 billion rubles (about 1.2 billion dollars) with a loan from VTB. The final maturity date is April 2018.

The credit line also provides for an additional 3.8 billion rubles to refinance another debt to VTB, which will not lead to an increase in Mechel's debt.

Earlier, Mechel announced an additional agreement to the loan agreement signed in 2010 with VTB, which increased the share of its collateral from 12.5 percent of the authorized capital to 37.5 percent.

The agreement also changes the loan repayment schedule. The amount of the transaction showed 59.9 billion rubles, or 1.7 billion dollars in debt plus interest payments for the loan period, the spokesman said. The agreement, signed on May 11, does not provide the company with a grace period until April 2015.

In February, Mechel negotiated about $ 1 billion in refinancing by the end of 2014, including about $ 500 million in VTB loans and several small lines of credit.

The company's total debt as of February 2014 was about $ 9 billion. The main creditors of Mechel were the three largest Russian banks - Sberbank, VTB and Gazprombank, as well as a large number of Western banks that participated in syndicates and club deals.

The Mechel Group is engaged in coal mining, production of iron ore concentrate, steel, rolled products, ferroalloys, high value-added products, heat and power generation.

Source - wrema.ru