RLPC-Mechel signs $1.5 bln syndicated loan-banker

LONDON, May 15 (Reuters) - Russia's Mechel (MTL.N: Quote, Profile, Research) signed a $1.5 billion, 12-month bridge loan on Thursday that backs its acquisition of ferro-chrome producer Oriel Resources (OLR.L: Quote, Profile, Research), a banking source said.

Bookrunners are ABN AMRO and Merrill Lynch. Eleven banks joined the deal, making 13 in the syndicate in total.

Syndication was oversubscribed and banks' commitments were scaled back. As a result, there was no general syndication, the source added.

The deal pays a margin of 260 basis points (bps) over LIBOR for the first six months, rising to 290 bps thereafter. The intention is for the bridge to be taken out via the IPO of Mechel's mining division.

The all-cash acquisition will allow the Russian steel and coal firm to more than double capacity of ferro-alloys used to make steel and also gives the New York-listed company control of chromite and nickel mines in Kazakhstan which Oriel was preparing to bring on stream.

Mechel, controlled by billionaire Igor Zyuzin, has a market capitalisation of $16.3 billion.

(Reporting by Christopher Mangham; Editing by Andrew Callus)