Press Releases

Mechel Reports Decisions of General Series 04 Bondholders Meeting

8July2016
Moscow, Russia July 8, 2016 Mechel PAO (MICEX: MTLR, NYSE: MTL), one of the leading Russian mining and metals companies, announces the decisions made at the general meeting of the holders of the companys Series 04 bonds regarding changes to the current repayment schedule and the interest rate for future periods.

Bondholders have approved by absentee ballot the new restructuring terms for Series 04 bonds (state number 4-04-55005-E dated 14.05.2009). The approved terms include the extension of maturity up to 2021, quarterly amortization of debt until 2021 and the coupon rate being the average between the Central Bank of Russia’s key rate plus 2.5% and a fixed figure determined for each year (annual decrease by 100 basis points from 13.0% to 9.0%).

99.3% of total votes of bondholders eligible for voting on the general meeting supported the aforementioned decisions.

VTB Capital AO, Gazprombank AO and AKB Svyaz-Bank PAO acted as the company’s agents for the bonds’ restructuring.

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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com

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Mechel is an international mining and steel company which employs over 66,000 people. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.

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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.

08.07.2016

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