MOSCOW, April 10 Debt-stricken Russian steel and
coking coal producer Mechel said on Wednesday it had
signed a 40 billion rouble ($1.28 billion) loan agreement with
VTB Bank to refinance its liabilities.
Mechel said the loan had a 15-month grace period with final
repayment due in five years. The interest rate will depend on
the firm's earnings before interest, taxes, depreciation and
amortisation, or EBITDA, ratio.
"Securing a new credit agreement with VTB Bank will enable
the company to refinance a large share of its loans which are
due to be repaid in 2013, which will significantly improve the
group's debt structure in the next 12 months " Mechel's chief
financial officer Stanislav Ploschenko said in a statement.
($1 = 31.1630 Russian roubles)
(Reporting By Alessandra Prentice; Editing by Lidia Kelly)