MOSCOW, Sept. 7, 2010 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and steel companies, announces placing its commercial papers of the 13 and 14 series.
On September 7, 2010, Mechel OAO completed two placements of its interest-bearing commercial papers of the 13 and 14 series with an obligatory centralized custody (ID serial number 4-13-55005-E of 10.08.2010 - 13 series, 4-14-55005-E of 10.08.2010 - 14 series) at MICEX Stock Exchange ZAO. Placement was performed by public subscription through collection of offers for fixed-price purchase of commercial papers and coupon rate for the first coupon period.
The number of the commercial papers placed makes 10,000,000 pieces (100% of the issue volume), the nominal value of the papers is 1000 roubles each and the total nominal value of the placed bonds is 10,000,000,000 roubles.
The 1st coupon rate of the commercial papers of the 13 and 14 series is 10.0% per year which corresponds to a sum of 49.86 roubles. According to the Decision on the commercial papers issue of the 13 and 14 series and the Prospectus of the papers, the coupon rate from the 2nd to the 10th coupon is equal to the 1st coupon rate.
Coalmetbank OAO, Sberbank OAO, AKB Svyaz Bank OAO, Bank of Moscow and OTKRITIE Investment Bank (JSC) were managers of the placement.
Commercial papers of 13 and 14 series are included to MICEX quotation list A1.
Stanislav Ploshchenko, Mechel's Chief Financial Officer commented on the event:
"We are satisfied with this placement and we appreciate our investor's confidence in Mechel. Raised funds will be used to finance Mechel Group's investment projects, in particular the construction of Elga coal mining complex."
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, steel, ferrochrome, ferrosilicon, 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 Ekaterina Videman 7 495 221 88 88 ekaterina.videman@mechel.com