SAO PAULO, Dec. 3, 2015 /PRNewswire/ -- Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), in compliance with Rule 358, 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 SABESP's Board of Directors' meeting held on November 27, 2015, approved the 20th issue of simple, unsecured and non-convertible debentures, in a single series, for public distribution, with restricted placement efforts, pursuant to CVM Rule 476, 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 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 issue and offer of Debentures will be used to replenish the Company's cash position and refinance its financial commitments maturing in 1Q16.