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Sabesp gets tenders for 56.4% of 12% notes
By Jennifer Chiou
New York, Nov. 3 - Companhia de Saneamento Básico do Estado de São Paulo (Sabesp) said it received tenders from holders of $126.9 million or 56.4% of its $225 million of 12% notes due 2008.
The tender ended at midnight ET on Nov. 2.
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, enough to amend the note indenture.
Sabesp said it executed a supplemental indenture.
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.
Those who tendered their notes had to deliver consents.
The company was 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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