Mechel Reports Raising US$2bln Pre-Export Finance Facility

Mechel OAO MTL raised the US$2bln pre-export facility. The new facility is split between the borrowers in mining, steel and ferroalloy divisions of Mechel Group and is drawn in two tranches, a 3-year and a 5-year one. Repayment will be done by monthly installments after 9 and 15 months grace periods respectively. The Facility is structured as a secured dual tranche pre-export facility. The proceeds raised under the new US$2bln facility have been used for refinancing Mechel Group's remaining debt obligations under the two syndicated pre-export facilities. Those facilities were already in the repayment phase with final maturity in December 2012.