Mechel bondholders consent to restructuring terms
MOSCOW. Sept 21 (Interfax) - Holders of Mechel's 13th and 14th series bonds gave their consent to terms for restructuring the bonds at a general meeting on September 18, the coal and steel group said in a statement.
Mechel said 82% of 13th and 79% of 14th series bondholders had consented to the restructuring.
According to the restructuring conditions, the bonds' nominal value will be partly repaid during four years at the dates set for the end of 13-19 coupon periods. The interest rate will be calculated as a simple average between the Bank of Russia's key rate plus 4 pp and the fixed coupon for each year.
Mechel said 10% of the bonds would be bought back as part of the offer on September 28, 2015. Another 10% will be bought back by the issuer as part of the offer within a year - 5% on March 1 and 5% on August 30, 2016.
VTB Capital acted as the company's agent for the bonds' restructuring.
Legal firm LECAP advised the company as a legal consultant, while Legal Capital Investor Services will run the restructuring as an approved bondholders' representative.
