MECHEL AGREED ON COVENANT HOLIDAYS WITH VTB BANK
Moscow, Russia – December 04, 2013 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces reaching agreement on covenant
holidays on bilateral credit lines from VTB Bank amounting to USD 1.8 billion
until the end of 2014.
“This agreement once again demonstrates that VTB is one of our most longstanding
and credible partners. We are thankful to VTB for many years of fruitful
cooperation, which has always contributed to Mechel OAO’s dynamic development
against a backdrop of the volatility in international commodity markets.
Covenant holidays provided by VTB are an important step forward in our debt
optimisation process,” Mechel OAO’s Chief Financial Officer Stanislav Ploschenko
stated.
“Mechel has proved itself, time and again, as a vibrant and resilient company
whatever the market situation. We see and approve the potential of its current
asset restructuring program and are willing to offer VTB’s support to Mechel,
confident that this new step will further consolidate our mutually beneficial
partnership,” First Deputy President and Chairman of VTB Bank Management Board
Yuri Soloviev noted.
***
Mechel OAO
Ekaterina Videman
Tel: +7 495 221-88-88
Ekaterina.Videman@mechel.com
***
Mechel is an international mining and steel company which employs over 80,000
people. Its products are marketed in Europe, Asia, North and South America,
Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled
products, ferroalloys, heat and electric power. All of its enterprises work in a
single production chain, from raw materials to high value-added products.
***
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 economic
conditions.