MECHEL RECEIVES LENDERS’ APPROVAL ON WAIVERS AND AMENDMENTS TO CREDIT FACILITIES


Moscow, Russia – April 27, 2012 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces completion of talks with lenders
resulting in waivers and amendments to certain major credit facilities.
On March 29, 2012, Mechel entered talks with over 25 leading international and
Russian banks regarding some financial covenants the company expected to breach
due to uncertain market conditions and a period of decline in market prices for
its products.
These talks were successfully completed on April 26, 2012, as lenders confirmed
their agreement to waivers on a number of credit facilities and including a
significant structural change to financial covenants. These changes to the
financial parameters will increase the company’s financial and operational
flexibility, even in the event that price volatility on key markets increases.
“Gaining approval from more than 25 leading international and Russian banks
within such a limited time frame is proof of their trust in Mechel as a quality
and reliable borrower as well as their confidence in our company’s strategic
choices. The new levels of covenants will enable us to continue our operational
and investment activity regardless of volatility on the global financial and
commodity markets. At the same time, one of our main priorities is systematic
deleveraging as a whole and reduction of short-term debt in particular,” Mechel
OAO’s Chief Financial Officer Stanislav Ploschenko noted.
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Mechel OAO
Ekaterina Videman
Tel: +7 495 221-88-88
ekaterina.videman@mechel.com
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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.