MOSCOW, April 4, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, announces reaching an agreement with an international syndicate of lender banks on getting approval for waivers and amendments to certain major credit facilities.
Mechel's talks with over 25 leading international and Russian banks regarding some financial covenants our subsidiary Mechel Mining expected to breach under its US$ 1 billion pre-export facility due to uncertain market conditions and a period of decline in market prices for its products, were successfully completed in a very short time.
Lenders reconfirmed their long-standing and full support through their agreement to the waivers and changes to financial covenants for 2013, as well as certain changes to the financial covenants. The changes to these parameters will increase Mechel Group's financial and operational flexibility, which is important considering volatility on key financial and commodity markets.
"The international bank syndicate's decision once again confirms their high trust in Mechel Group as a quality borrower despite volatility on our key markets. By their agreement, the lenders demonstrated Mechel their support for its development strategy, where ongoing deleveraging measures are a key part. It must also be noted that the agreement with the international lender bank syndicate will enable the Group to continue implementing several key large-scale investment projects announced earlier, aimed at consolidating its leading positions in mining and steelmaking," Mechel OAO's Chief Financial Officer Stanislav Ploschenko said.
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 economic conditions.
CONTACT: Mechel OAO Anton Lapin Tel: +7 495 221-88-88 firstname.lastname@example.org