Mechel offers new conditions to bondholders

Mechel of Igor Zyuzin, which is on the home straight of negotiations on bank loans restructuring, has acknowledged that it can’t cope with the investments in production without restructuring bonds by 9 billion rubles. The company urges investors not to bring them to the June offer, proposing to increase the coupon rate to 9.5-13.5% per annum and quarterly repayment of the nominal value until 2021. Other metallurgists have no such problems, but they also actively refinance their bonds.

Mechel of Igor Zyuzin has offered bondholders of the 17-19th series of nominal volume of 15 billion rubles (securities for 9.2 billion rubles are in circulation) increase in the coupon rate and the quarterly amortization of the securities till May 2021 instead of their redemption on offers in June, it follows from the presentation of the company. The rate is proposed to be calculated as an arithmetic mean between the Central Bank rate plus 2.5% and a fixed value for each year (an annual decrease by one percentage point from 13.5% to 9.5% per annum), while now it is 8.4% per annum. The coupon payment is offered twice a year. Till December, Mechel is ready to pay quarterly 3.5% of the nominal value of the securities, from December to June 2017 - 4% of the nominal value, and after - 5%.