Mechel completes deal for loan refinancing

Tuesday, 21 July 2009 10:40:20 (GMT+2)

On July 20, Mechel, one of the leading Russian mining and metals companies, announced the closing of the deal for the refinancing of its short-term credit facilities totaling US$2.6 billion, which were secured to purchase assets in the Russian republic of Yakutia as well as UK-based Oriel Resources Ltd.

As SteelOrbis previously reported, the negotiations with the banking syndicates that provided Mechel with credit facilities for the acquisition of coal miners Yakutugol Holding Company and Elgaugol in October 2007 and of ferrochrome producer Oriel Resources Ltd in April 2008 resulted in the signing of an agreement on July 10, 2009, for the refinancing of these facilities for a period of up to 3.5 years.

On July 17, 2009, Mechel signed all documentation for its refinancing operations. Currently, the bridge loan which was taken for the Oriel Resources acquisition is fully repaid.

27 banks were participants in the deal, for which Mechel's legal adviser was the international law firm Gide Loyrette Nouel.

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