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Russia's Mechel: holders of three bond issues agree to restructuring
June 6, 2016 / 7:07 AM / 2 years ago

Russia's Mechel: holders of three bond issues agree to restructuring

MOSCOW, June 6 (Reuters) - Indebted Russian coal and steel producer Mechel said on Monday the holders of three bond issues had agreed to restructuring terms, changing the current repayment schedule and future interest.

The new terms, backed by over 75 percent of holders of each series, include debt amortization until 2021 with the coupon rate as the average between the Russian central bank’s key rate plus 2.5 percent and a fixed figure determined each year - an annual decrease of 100 basis points from 13.5 percent to 9.5 percent.

“The conditions approved by bondholders enable us to have a debt repayment schedule without a significant outflow from the group’s operational cash flow,” Mechel quoted its Chief Executive Officer Oleg Korzhov as saying.

Reporting by Maria Kiselyova; Writing by Dmitry Solovyov

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