23rd DEBENTURES ISSUANCE
SÃO PAULO, June 21, 2018 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São Paulo – Sabesp ("SABESP" or "Company"), pursuant to the provisions of Article 157, Paragraph 4 of Law 6.404/76 and the provisions of Brazilian Securities and Exchange Commission ("CVM") Instruction 358, dated as of January 3, 2002, as amended, hereby informs its shareholders and the market in general that, the Board of Directors, in a meeting held on June 21, 2018, approved the 23rd issuance of simple, unsecured and non-convertible debentures, in up to three series, for public distribution, with restricted distribution efforts, pursuant to CVM Rule No. 476, dated as of January 16, 2009, as amended ("CVM Rule 476"), in the total amount of up to seven hundred fifty thousand million reais (R$ 750,000,000.00) ("Debentures" and "Offer", respectively), being the Offer conditioned to the issuance of, at least, five hundred thousand (500,000) Debentures, in the total amount of five hundred million reais (R$500,000,000.00). The issuance of each of the series, the number of Debentures to be placed in each serie, the remuneration of the Debentures and the total amount of the Offer will be defined according to the bookbuilding process, in the communicating vessels system.
The Offer will target professional investors only, in compliance with Article 9-A of CVM Rule 539, of November 13, 2013, as amended, and Article 2 of CVM Rule 476. According to Article 3 of CVM Rule 476, the Offer will be presented to a maximum of seventy-five (75) professional investors, though the Debentures may only be subscribed by a maximum of fifty (50) professional investors. The process of structuring of the Offer and distribution of the Debentures will be undertaken by a consortium of financial institutions belonging to the Securities Distribution System.
The proceeds from the issuance and offering of the Debentures will be used to refinance its financial commitments maturing in 2018 and to the Company's cash flow increment.
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