Mechel PAO said Dec. 29 that it completed talks to restructure a US$1 billion syndicated pre-export facility, securing the agreement of the majority of the facility's participants representing more than 75% of the loan value.
As of Dec. 22, about 70% of the creditors were reportedly on board for the restructuring deal.
Conditions include extending the loan's final maturity to the first quarter of 2022 and a lower interest rate of London Interbank Offered Rate plus 3.5% annual interest, with the possibility of a further reduction to LIBOR plus 3% annual interest.
Mechel expects restructuring documents to be signed in the first quarter of 2018.
"This level of support — over 75% — is sufficient for the legal restructuring procedure," CEO Oleg Korzhov noted. "However, we will continue our talks in the hope that soon the restructuring plan will win the approval of all creditors."
In a same-day statement, the company also announced the departure of CFO Sergey Rezontov.