Mechel may increase loan for Yakutia coal fields purchase to 2.3 bln usd

MOSCOW, Dec. 5, 2007 (Thomson Financial delivered by Newstex) -- Mechel (NYSE:MTL) OAO may increase the size of the loan it is raising to finance the acquisition of Yakutugol OJSHC, Elgaugol OAO and other assets to 2.3 bln usd from 2.0 bln, a banking industry source told Interfax news agency.

Syndication of the loan will be completed before Dec 15.

Mechel announced last month that it had arranged a 2 bln usd refinancing package to finance its October acquisition of the coal mines.

It won the assets at auction with a 58.2 bln rouble bid.

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// Dec. 5, 2007

Resource: CNNMoney.com