SAO PAULO, May 13, 2017 /PRNewswire/ -- A Companhia de Saneamento Básico do Estado de São Paulo – Sabesp ("SABESP" or "Company"), in compliance with Rule No. 358, dated as of January 3, 2002, as amended, issued by the Brazilian Securities and Exchange Commission ("CVM"), hereby informs its shareholders and the market in general that the members of the Board of Directors of SABESP, in a meeting held on May 12, 2017, approved the 21th issuance of simple, unsecured and non-convertible debentures, in up to two series, for public distribution, with restricted placement efforts, pursuant to CVM Rule No. 476, dated as of January 16, 2009, as amended ("CVM Rule 476"), in the total amount of five hundred million reais (R$ 500,000,000.00) ("Debentures" and "Offer", respectively). The existence of each of the series and the amount of issued Debentures in each series 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 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 2017 and to replenish the Company's cash position.
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