Russian mining company, Mechel OAO MTL announced that its subsidiary, Yakutugol Holding Company OAO, has inked a deal with Raiffeisenbank AO to extend the maturity of active credit lines amounting to $30 million till Feb 2016. Per the agreement, the outstanding debt will be converted into Russian rubles.
Mechel is a leading steel and coal producer with a strong position in key businesses like production of specialty steel and alloys.
Recently, Mechel received a notice from the New York Stock Exchange (“NYSE”) stating that the company’s American Depositary Receipts (ADRs) are in agreement with the listing norms of the NYSE. The listing norms require an ADR’s average closing price to be not lower than $1 over 30 consecutive trading days.
Mechel had earlier received a notice from the NYSE on Oct 30, 2014, stating that the company’s ADRs were no longer in agreement with the listing norms. At that time, the company’s shares were assigned a <.BC> suffix. On Jan 29, 2015, the closing price for ADRs exceeded $1 and continued to rise throughout February. Finally on Feb 27, 2015, the average closing price of the company’s ADRs over 30 consecutive trading days stood at $1.26 per ADR.
On Mar 2, 2015, Mechel received an official notice from the NYSE that the <.BC> suffix from its shares will be removed as its ADRs are now in agreement with the NYSE listing norms.
Mechel currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the steel space include ThyssenKrupp AG TYEKF, Kobe Steel Ltd. KBSTY and LB Foster Co. FSTR. While ThyssenKrupp sports a Zacks Rank #1 (Strong Buy), Kobe Steel and LB Foster carry a Zacks Rank #2 (Buy).
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