Material Fact – Conditions of Effectiveness
MATERIAL FACT
São Paulo, December 14, 2017. Contax Participações S.A. (“Company”; CTAX3), pursuant to article 157, paragraph 4, of Law 6,404/76 and CVM Instruction 358/02, hereby informs its shareholders, investors and the market in general, in complement to the material facts disclosed by the Company on March 23, 2017; May 19, 2017; June 5, 14, 19, 24 and 28, 2017; July 6, 10 and 28, 2017; August 5, 8, 9, 12, 14, 21, 22 and 30, 2017; September 13, 14 and 28, 2017; October 17, 2017; November 1 and 14; 2017; and December 12, 2017 (“Material Facts”), that, today, it is in compliance with the conditions of effectiveness to extend its financial debt (“Debt Renegotiation”), in accordance with the terms and conditions in the Material Facts disclosed by the Company on August 9, 14 and 21, 2017 and September 13, 2017, with the new terms and conditions established in the amendments to the instruments that represent the Company’s financial debt becoming effective.
In continuity with compliance with the other obligations assumed with its creditors within the scope of the Debt Renegotiation, the Company will proceed with necessary measures to perform the public distribution offering of (a) book-entry, registered, secured debentures, with additional personal guarantee, in up to four series. The first and the second series debentures will be composed of simple and non-convertible debentures, and the third and fourth series, composed of debentures convertible into shares of fifth issue by the Company, with restricted placement efforts, pursuant to CVM Instruction 476, of January 16, 2009, as amended, whose terms and conditions are in the material fact disclosed by the Company on September 28, 2017 and (b) subordinated debentures, which are convertible into shares under the same conditions of the fifth issue debentures, with payment of interest and amortization of principal in a single installment, payable after the full payment of the creditors of the financial debts addressed in the Debt Renegotiation, whose terms and conditions will be timely resolved by the Company. Such offerings are subject to an increase in the authorized capital limit set forth in the Company‘s Bylaws at an Extraordinary Shareholders’ Meeting called for that purpose.
The Company also informs that the assumptions about its future financial performance for the period from 2017 to 2022 prepared exclusively to guide the negotiation with its financial creditors within the scope of the Debt Renegotiation, object of disclosure to the market through the material fact dated July 28 and the inclusion in item 11 of the Company’s 2017 Reference Form, versions 4.0 to 9.0, have been discontinued, thus losing their validity and should not be used as a parameter to any investment decision related to the securities issued by the Company.
The Company renews its appreciation for the support received from all its creditors, which made it possible to reach a broad consensus required to extend its financial debt.
Cristiane Barretto Sales
Chief Financial and Investor Relations Officer