MOSCOW, May 4, 2012 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, announces signing agreements with Gazprombank for the extension of short-term credit facilities totalling 22 billion rubles (approximately 747 million US dollars*).
Gazprombank extended the maturities on revolving credit lines opened for Chelyabinsk Metallurgical Plant OAO, Mechel-Service OOO and Mechel-Energo OOO by 3 to 5 years.
"Our cooperation with Gazprombank once again demonstrated its strategic importance for the Group and its remarkable efficiency. This extension, together with the 500-million-dollar loan granted by Gazprombank less than a week ago and our efforts to re-finance the short-term share of our debt, undertaken over the past 3 months, made a key improvement in the structure of the Group's credit portfolio. This is not only another proof of our lenders' trust in Mechel, but also a platform for further optimization of the company's debt by extending credit instruments and decreasing interest expense," Mechel OAO's Chief Financial Officer Stanislav Ploschenko noted.
* Based upon the Russian Central Bank exchange rate of 29.46 RUR/$ as of May 4, 2012.
Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.
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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.