Moscow, Russia — March 28, 2013 – 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.