Material Fact – Clarification on CVM / BOVESPA consultations


Mogi das Cruzes, April 28, 2017 – JSL S.A. (BM&FBOVESPA: JSLG3 and Level I ADR: JSLGY) (“Company”), a publicly held company registered with the Brazilian Securities Commission (“CVM”), with headquarters in the city of São Paulo, State of São Paulo, at Avenida Presidente Juscelino Kubitscheck, 1.327, conjunto 221, Edifício International Plaza II, Vila Nova Conceição, CEP 04543-011, enrolled with the Corporate Taxpayer’s ID (CNPJ/MF) under No. 52.548.435/0001-79 (“Company” or “JSL”), in compliance with the provisions in CVM 358/02, hereby provides clarifications in response to Official Letter 154/2017/CVM/SEP/GEA-2, attached thereto, issued to the Company by the Management Staff in charge of Monitoring Companies 2 of the Brazilian Securities Commission (“CVM”) on April 27, 2017 (“Official Letter”):

  1. The Official Letter makes reference to the news published in Valor Econômico newspaper’s website on April 27, 2017 entitled “JSL and Cemig prepare seven-year bond issuances”, which mentions that JSL “plans to raise at least US$300 million with seven-year bonds” (“News”).
  2. With respect to the News, JSL hereby clarifies that the Company is always seeking alternatives to optimize its capital structure, which includes considering the issuance of bonds in the domestic and international markets. However, the decision to conduct this type of transaction takes into consideration several factors, including the global and Brazilian economic scenario and the opportunities that arise in the capital markets in Brazil and abroad.
  3. In this context, JSL clarifies that its management has continuously considered the possibility to raise capital by issuing bonds in the Brazilian and foreign capital markets, subject to obtaining the corporate and regulatory approvals applicable.
  4. The Company will keep the market up-to-date of any developments on this matter, under the relevant legislation.

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