Inco plans debenture issue

Nickel giant Inco (TSE) is hoping to raise US$150 million through an offering in the U.S. of convertible debentures.

The company has filed a preliminary prospectus with the Ontario Securities Commission; the prospectus has also been filed pursuant to the multijurisdictional disclosure system with the Securities and Exchange Commission in the U.S.

Inco will use the proceeds to repay long-term debt and fund capital projects in Canada, including development of the McCreedy East mine.

The underwriter is Morgan Stanley. The debentures will not be offered for sale in Canada.