Moscow Interbank Currency Exchange floats second bonded debt by Mechel JSC

Mechel JSC reports to have floated the second bonded debt at Moscow Interbank Currency Exchange (MICEX). The annual first coupon interest rate (in the first bond issue) came to 8.4%. The bond issue has been fully placed by the end of the first day.

As the companyĺs spokesperson said to UrBC representative, the bonds were offered at 100% of their face value. The annual first coupon interest rate ranged between 7.95% and 8.65%. 28 applications were accepted altogether, with 5 million bonds having been sold. The auction demand came to 5,440 million RUR.

The money thus obtained is meant for refinancing the companyĺs debt occasioned by the previous bond issues by Mechel JSC and Mechel Trade House Ltd.

The bonds will be valid for seven years and provide for fourteen coupon payments. The first coupon interest rate is to be determined in the course of a contest held by Moscow Interbank Currency Exchange., the second to eight coupon interest rate is the same as that of the first coupon, with the rest of the coupon rates to be settled by the issuer.

The bond issue provides for a special redemption offer in four years. The state serial number of the 02 issue is 4-02-55005-┼ (registered on May 25, 2006 by Federal Financial Markets Service).

Security for a loan is provided by Mechel Trade House Ltd.; the bond issue was supervised by Gazprombank CJSC.


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