Mechel placed commercial papers at a sum of 5 billion Rubles
Mechel, one of the leading Russian mining and metals companies, announces successful closure of the books for the placement of its commercial papers of the 19 series.
On June 9, 2011 Mechel closed the books for the placement of its interest-bearing commercial papers of the 19 series with an obligatory centralized custody (ID serial number 4-19-55005-E of 10.08.2010). The papers’ maturity is 10 years, with the put option in five years.
The number of the commercial papers to be placed makes 5,000,000 pieces (100% of the issue volume), the nominal value of the papers is 1,000 rubles each and the total nominal value of the placed bonds is 5,000,000,000 rubles (nearly 180 million US dollars*).
Due to the fact that the demand for Mechel’s commercial papers of the 17 and 18 series, for which the books were closed on June 7, 2011, topped 22 billion rubles, the papers of the 19 series were offered to the investors on the same conditions. So the coupon rate of the commercial papers of the 19 series for the period until the put option date is 8.40% per year which corresponds to a sum of 41.88 rubles (approximately 1.51 US dollars*).
The papers of the 19 series will be placed on the MICEX Stock Exchange on June 14, 2011, with Coalmetbank acting as the issuer’s agent for the placement.
VTB Capital, Sberbank and Coalmetbank acted as managers of the placement.
Commercial papers of 19 series are included in MICEX’s quotation list A1.
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