MTL Mechel PAO

MECHEL HAS COMPLETED RESTRUCTURING WITH RUSSIAN STATE BANKS
Moscow, Russia – December 26, 2016 – Mechel PAO (MICEX: MTLR, NYSE: MTL), one of
the leading Russian mining and metals companies, reports signing agreements with
VTB Bank for extending the maturity of the debt on its credit lines until 2022.
According to the signed agreements totaling 70.2 billion rubles, payments on the
debt was extended till first quarter of 2020 with repayment by the first quarter
of 2022. Simultaneously conditions of the trade financing, with outstanding
balance of 45 million euro, were also renegotiated and the deal was extended
until April 2022.
“We thank all our lenders for their constructive and balanced approach. Signing
of the agreements with VTB Bank means that similar conditions on debt repayment
that we made with Gazprombank and Sberbank will now come into force. So we can
say that the extensive restructuring process with Russian state banks, which
hold 67% of Mechel’s debt, is complete. This restructuring will enable the
company to stabilize its financial position and focus on operational efficiency.
We hope that this will also speed up restructuring agreement with our
international lenders. Considering the positive trends on commodity markets and
the additional cash flow from our implemented investment projects, we will make
every effort to begin repaying our debt early, to decrease the company’s debts,”
Mechel PAO’s Chief Executive Officer Oleg Korzhov noted.
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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
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Mechel is an international mining and steel company which employs 66,000 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.
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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.