OREANDA-NEWS. On November 06, 2007 Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announced that it has arranged a US$2 billion Acquisition Refinancing Package through several banks, reported the press-centre of Mechel.

The $2 billion Acquisition Refinancing Package will refinance the acquisition of the issued share capital of Yakutugol OJSHC (75% of the statutory issued share capital minus one share), Elgaugol OAO (68.86% of the statutory issued share capital) and the real estate complex of a railway and a road from the Zeysk Railway Station (Far Eastern Railway) in Zeysk to the Elga coal deposits. As previously announced, the assets were acquired through an auction held on October 5, 2007.

The Acquisition Refinancing Package is comprised of a Classic Secured 5-year Pre-Export Finance Facility totaling $1,7 billion (85%) and 3-year Term Loan Facility totaling $300 million (15%).

ABN AMRO, BNP Paribas, Calyon, Natixis, Sumitomo Mitsui Banking Corporation Europe Limited and Societe Generale Corporate & Investment Banking are joint book running managers and are joined by Commerzbank Aktiengesellschaft to arrange the $2 billion Acquisition Refinancing Package for the Company.

Syndication was launched on November 2, 2007 and the banks were invited to participate in the transaction on a take and hold basis. A bank meeting took place in London on November 6, 2007 and was very well-attended.