Vale do Rio Doce plans R$5 billion debenture issue, to refinance bridge loan

By Angela McDaniels

Seattle, Oct. 30 - Companhia Vale do Rio Doce plans to sell R$5 billion of non-convertible debentures in the Brazilian public market, according to a 6-K report filed with the Securities and Exchange Commission on Friday.

The company said it filed a request to make the offering with the Comissão de Valores Mobiliários, the Brazilian Securities Commission, on Friday.

Proceeds from the debentures will be used to amortize part of the bridge loan the company obtained to finance its all-cash acquisition of Inco Ltd. for C$86 per share.

The refinancing of the bridge loan will preserve the Rio de Janeiro, Brazil-based mining company's average debt maturity, maintain its low-risk debt profile and minimize its weighted average cost of capital, according to the filing.

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