Inco Completes US$230M Bought Deal

On March 29, 2001, Inco Limited completed a bought deal with Merrill Lynch, Pierce, Fenner & Smith Incorporated for US$230 million in gross proceeds to Inco of its 20-year zero-coupon Liquid Yield Option™ Notes. These notes were offered in the United States in reliance on Rule 144A under the US Securities Act of 1933. The LYONs notes represent zero-coupon convertible, redeemable debt instruments with certain special conversion features and accrue interest on a yield to maturity basis of 3.25 per cent per year. The notes’ total amount payable at maturity in 2021 is approximately US$438 million. Inco is a leading producer of nickel and also an important producer of copper, precious metals and cobalt.

Inco was represented by Stuart F. Feiner, Executive Vice-President, General Counsel and Secretary, and by Julie A. Lee Harrs, Assistant General Counsel and Assistant Secretary. Representing Inco in the United States were Donald R. Crawshaw, Robert W. Downes, Susan J. Krembs, Paul W. Golding, Jill A. Edwards, George J. Eapen (corporate/securities), and Willard B.Taylor and Christopher S. Kippes (tax) of Sullivan & Cromwell. Inco’s Canadian counsel were Dale R. Ponder, Firoz Ahmed, Monica Biringer, Julie Colden, Martin Saipe and Andrew D. Scipio Del Campo from Osler, Hoskin & Harcourt LLP’s Toronto office and Robert C. Lando from the firm’s New York office. Merrill Lynch, Pierce, Fenner & Smith Incorporated was represented by Brice T. Voran, Jason Lehner, Nancy H. Bertrand and Jennifer Mazin of Shearman & Sterling’s Toronto office, and by Thomas A. Smee, Lisa Damiani, Ron Wilson, K.A. Siobhan Monaghan and Claire Kennedy of Davies Ward Phillips & Vineberg LLP.