Mechel Receives Lenders’ Approval on Waivers and Amendments to Credit Facilities

Mechel’s talks with over 25 leading international and Russian banks regarding some financial covenants our subsidiary Mechel Mining expected to breach under its US$ 1 billion pre-export facility due to uncertain market conditions and a period of decline in market prices for its products, were successfully completed in a very short time.

Lenders reconfirmed their long-standing and full support through their agreement to the waivers and changes to financial covenants for 2013, as well as certain changes to the financial covenants. The changes to these parameters will increase Mechel Group's financial and operational flexibility, which is important considering volatility on key financial and commodity markets.

“The international bank syndicate’s decision once again confirms their high trust in Mechel Group as a quality borrower despite volatility on our key markets. By their agreement, the lenders demonstrated Mechel their support for its development strategy, where ongoing deleveraging measures are a key part. It must also be noted that the agreement with the international lender bank syndicate will enable the Group to continue implementing several key large-scale investment projects announced earlier, aimed at consolidating its leading positions in mining and steelmaking,” Mechel OAO’s Chief Financial Officer Stanislav Ploschenko said.