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Sabesp receives tenders, consents for 54.3% of 12% notes; sets pricing
By Laura Lutz
Chicago, Oct. 20 - Companhia de Saneamento Básico do Estado de São Paulo (Sabesp) received the consents it needed to amend its $225 million of 12% notes due 2008 and announced the pricing for the ongoing tender offer for the notes.
As of the consent deadline at 5 p.m. ET on Oct. 19, the company had received tenders and consents for $122.2 million principal amount, or 54.3%, of the outstanding notes.
The company also said that it would pay $1,101.18 for each $1,000 of notes tendered by the consent deadline.
That amount includes a consent payment of $20.00 per $1,000 principal amount of notes. Notes tendered after the consent deadline will receive the same amount, less the consent payment.
The company payout was determined by reference to the yield to maturity on the bid-side price of the 4.625% Treasury due Sept. 30, 2008 and a fixed spread of 50 basis points. Pricing will be fixed at 2 p.m. ET on Oct. 19.
Sabesp said it will also pay accrued interest to the payment date.
The consents it has received allow the company to eliminate substantially all of the restrictive covenants and related provisions contained in the note indenture.
The tender ends at midnight ET on Nov. 2.
Those who tender their notes must deliver consents.
The company is seeking consents from a majority of noteholders.
Deutsche Bank Securities is the dealer manager and solicitation agent (866 627-0391 or call collect 212 250-2955). Global Bondholder Services Corp. is the information agent and depositary (866 873-5600 or call collect 212 430-3774).
Sabesp is a water and sewage service provider based in São Paulo, Brazil.
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