News

JHSF PARTICIPAÇÕES S.A.

Publicly Traded Company

NOTICE TO THE MARKET

Debenture Issuance for Real Estate Receivables Certificates

JHSF Participações SA ("JHSF3") and JHSF Malls SA ("Malls") informs that, as part of the companies‘ strategy of lengthening and reducing the cost of its debt structure, the Boards of Directors of the two companies approved, on this date, the issuance of the second of non-convertible debentures with real guarantee, in three series, for private placement of Malls ("Issuance").

The Issuance, made by Malls, is fully subscribed by True Securitizadora SA ("Securitizadora") with the purpose of being used for a securitization operation to be carried out through the issuance of Certificates of Real Estate Receivables by the Securitizadora ("CRI"), in the total amount of R$ 650 million:

The First Series, in the amount of R$310 million, with remuneration based on the daily average rate of DI - Interbank Deposits ("DI Rate") plus 2.15% per annum, which may be reduced to 1.90% per year depending on certain events, with a maturity of 15 years, with a 3-year grace period of principal and monthly amortization of interest.

The Second Series, in the amount of R$ 310 million, will be remunerated based on the IPCA plus (i) 6.45% per annum ("Ordinary Spread IPCA") and may be reduced to (ii) 6.20% (six integers and twenty-hundredths per cent) per annum, assuming that the Net Debt / Adjusted EBITDA ratio is less than or equal to 3.5x in four consecutive quarters, the term of which is 15 years, with 3 years of principal depletion and monthly amortization of the IPCA and interest rates.

The Third Series, in the amount of R$30 million, will be remunerated based on the DI Rate, plus 2.15% per year and will have a maturity of 60 days.

In comparative terms, the Issuance has interest rates lower than the current average consolidated at JHSF3 (2.15% per year or reduced to 1.90%, versus 3.2% today) and average term equivalent to 8.6 years, versus current 3.7 years.

São Paulo, May 20, 2019.

Last Update on May 20, 2019

Back Top