Document:

exhibit04_1.htm - Generated by SEC Publisher for SEC Filing

Exhibit 4.1

 

English Language Summary

 

Deed of
Indenture for the Issuance of Simple Unsubordinated Debentures, with Additional
Personal Guarantee, Not Convertible into Shares, in a Single Series, for Public
Placement with Limited Efforts of the First Issuance of TIM S.A., dated as of
January 9, 2019, between TIM S.A., as issuer, Simplific Pavarini Distribuidora
de Títulos e Valores Mobiliários Ltda., as fiduciary agent, and TIM
Participações S.A., as guarantor. 

 

On January 9, 2019, TIM
S.A., or TIM, entered into a debentures indenture with Simplific Pavarini
Distribuidora de Títulos e Valores Mobiliários Ltda., as fiduciary agent, and
TIM Participações S.A., or TIM Participações, as guarantor.

The debentures
will be offered through a public placement with limited efforts in accordance
with CVM Instruction 476. The leading underwriter is Banco Itaú BBA S.A., which
will intermediate the placement and distribution of the debentures to
professional investors as defined in CVM Instruction 539. TIM will use the
proceeds to reinforce the company’s working capital.

The total amount
of the issuance, in a single series, is of R$1,000,000,000 through the issuance
of 100,000 debentures. The debentures will have nominal value of R$10,000 on
the issuance date. The bookkeeping agent of the debentures and the settling
bank is Banco Bradesco S.A. The debentures are non-convertible and unsecured
with additional personal guarantee pursuant to article 58, caput, Law No.
6,404/76. For all legal purposes, the issuance date is January 15, 2019 and the
term of the debentures is of 18 months as from the issuance date. Therefore,
the maturity date is July 15, 2020.

The debentures
will be registered for (i) distribution in the primary market through the MDA –
Asset Distribution Module of B3 S.A. – Brasil, Bolsa, Balcão, or B3, and (ii)
trading in the secondary market through CETIP21 – Bonds and Securities, 
subject to financial settlement and electronic custody by B3.

The debentures
nominal value will not be monetarily adjusted but it is subject to interest
equal to 104.10% of the accumulated variation of the average daily rates of DI
(inter-financial deposits) of one day over extra-group, expressed in percentage
amount on a 252 business days basis, as calculated and disclosed by B3.

The indenture
contains standard provisions regarding extraordinary repayments, optional early
redemption by TIM, and acceleration, both automatic and non-automatic,
including without limitation bankruptcy procedures by TIM, or any judicial or
extrajudicial reorganization, default in obligations over R$100,000,000,
failure to make certain payments under the indenture, change of control, among
others.

TIM
Participações executed the indenture as a personal guarantor and it is jointly
and severally liable for the obligations assumed by TIM under the indenture.

The indenture
contains customary covenants for TIM and provisions regarding the rights and
obligations of the fiduciary agent. Moreover, TIM and TIM Participações gave
customary representations and warranties under the indenture.exhibit04_2.htm - Generated by SEC Publisher for SEC Filing

Exhibit 4.2

English Language Summary

 

 Protocol and
Justification of the Merger of TIM Celular S.A. by TIM S.A., dated as of
October 15, 2018, between TIM Celular S.A. and TIM S.A.

 

          On
October 15, 2018, TIM S.A., or TIM, and TIM Celular S.A., or TIM Celular,
entered into a Protocol of Merger and Justification by means of which TIM
Celular was merged into TIM in order to consolidate the telecommunication
services through the licenses SMP (personal mobile service), STFC (commutated
fixed telephonic service) and SCM (multimedia communication service), as well
as the added-value services and other economic activities performed by both
companies.

 

          The
integration of both companies’ operations has the purpose of promoting
operational and financial synergies, enhancing the competitiveness of the
companies in the market, and implementing a more efficient structure of
accounting systems and internal controls. 

 

          Upon the
completion of the merger, (1) TIM Celular will be extinct, as well as the
38,254,833,561 shares issued by it; (2) TIM Celular’s shareholder will receive
shares issued by TIM; and (3) TIM will be the successor of all of TIM Celular’s
rights and obligations.

 

          The
criteria used for the evaluation of TIM Celular’s net equity to be merged into
TIM is the accounting value accrued based on TIM Celular’s balance sheet dated
as of September 30, 2018. TIM Celular’s net equity was appraised as
R$17,035,253,769.34.

 

          TIM
Celular’s net equity will be allocated into TIM’s net equity accounts as
follows: (i) R$9,434,215,719.87 into the capital stock; (ii) R$30,600,309.64
into the capital reserve; (iii) R$7,110,252,722.96 into the profits reserve;
and (iv) R$460,185,016.87 into accumulated losses or profits. Upon the approval
of the merger, TIM’s capital stock will be increased to R$13,476,171,764.87
upon the issuance of 38,254,833,561 new common shares. The share exchange rate
of shares issued by TIM Celular to shares issued by TIM will be of one-to-one
share.

 

                The
completion of the merger was subject to the approval by the shareholders of
both companies.exhibit04_3.htm - Generated by SEC Publisher for SEC Filing

Exhibit 4.3

 

English Language Summary

 

Credit
Agreement, dated as of May 2, 2018, between BNDES, the Brazilian Development
Bank (Banco Nacional de Desenvolvimento Econômico e Social), as lender and TIM
Celular S.A. (now TIM S.A.) as borrower, and TIM Participações S.A. as
guarantor.

 

On May 2, 2018, TIM
Celular S.A., or TIM Celular, entered into a credit agreement, or the Credit
Agreement, with an aggregate principal amount of R$1.5 billion with the
Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e
Social), or BNDES.  TIM Participações S.A., or TIM Participações, is a
guarantor under the Credit Agreement, jointly and severally liable for TIM
Celular’s obligations.

The principal
amount is split into three credit lines, or, collectively, the Credit Lines, with
equal interest rates and tenors: (1) Credit Line A, in an amount of R$1.09 billion;
(2) Credit Line B, in an amount of R$390 million; and (3) Credit Line C, in an
amount of R$20 million. The principal amount of each of the Credit Lines is
subject to an interest rate of 1.95% over the TJLP rate.

In addition to
other standard sections, certain conditions precedent as set forth in the
Credit Agreement must be met for the funds to be released, including the
execution of the fiduciary assignment agreement and the payment of R$4.5
million commission to BNDES.  

The availability
period of the Credit Lines will be of 27 months from the execution of the
Credit Agreement. The principal amount of the debt should be paid in 60 monthly
installments, being the first due on September 15, 2020 and the last one due on
August 15, 2025. 

In order to
guarantee the obligations assumed under the Credit Agreement, TIM Celular
pledges to BNDES credit rights owed by TIM Celular under: (1) the payment of
invoices by its users under postpaid mobile telecommunication services rendered
by TIM Celular; and (2) the centralizing account and the retention account. The
pledge granted by TIM Celular shall guarantee such company’s obligations under
the Credit Agreements Nos. 08.2.0790.1, 13.2.1372.1 and 15.2.0825.1, all
executed with BNDES.

Each Credit Line
must be used for certain purposes as set forth in the Credit Agreement.  Credit
Line A must be used to support TIM Celular’s investment plan for the years of
2017 to 2019 through the acquisition of materials, as well as to invest in engineering
services and information technology (IT) systems. Credit Line B must be used
for the acquisition of national equipment under TIM Celular’s investment plan. 
Credit Line C must be used in investments in social projects within the
community.

The Credit
Agreement contains standard positive and negative covenants.  For example, TIM
Celular undertakes to complete the financed project in 27 months and not to
execute agreements that contain cross-default obligations in connection with
agreements executed by Telecom Italia S.p.A.

Among others, any
of the following would constitute an event of default during the term of the
Credit Agreement, for which BNDES may require acceleration of the maturity date
and repayment: (i) certain negative covenants are not complied with; (ii) there
is a final, non-appealable judgment against TIM Celular in connection with slave
or child labor or crimes against the environment; (iii) there is a change of
control of TIM Celular or other corporate reorganization without BNDES prior
consent; (iv) certain obligations set forth in the Credit Agreement are not
complied with; or (v) TIM Celular uses the funds for purposes other than those
set forth in the Credit Agreement.exhibit04_4.htm - Generated by SEC Publisher for SEC Filing

Exhibit 4.4

 

English Language Summary

 

Credit
Agreement, dated March 20, 2019, between Agência Especial de Financiamento
Industrial S.A. – FINAME, an entity within the BNDES system, as lender and TIM
S.A. as borrower.

 

On March 20, 2019,
TIM S.A., or TIM, entered into a credit agreement, or the Credit Agreement,
with an aggregate principal amount of R$390 million with the Special Industrial
Financing Agency of the BNDES (Agência Especial de Financiamento Industrial
S.A.), or FINAME, a subsidiary of the Brazilian Development Bank (Banco
Nacional de Desenvolvimento Econômico e Social), or BNDES.  TIM
Participações S.A., or TIM Participações, is guarantor under the Credit Agreement,
jointly and severally liable for TIM’s obligations.

The principal
amount of the credit line is R$390 million, or the Credit Line and each
installment shall be considered a Sub-Credit Line with its own grace periods,
amortization periods and total financing periods. The principal amounts of each
Credit Lines are subject to an interest rate composed of (1) cumulative
variation of IPCA, accrued pro rata temporis; (2) fixed interest rate of
2.84% per year; and (3) FINAME spread. 

In addition to
other standard sections, certain conditions precedent as set forth in the
Credit Agreement must be met for the funds to be released, including the
execution of the fiduciary assignment agreement and compliance with contractual
obligations under agreements executed with the BNDES group.  

The availability
period of the Credit Line is 24 months from the execution of the Credit
Agreement. The amounts disbursement under the Credit Line shall be paid in
monthly installments, being the first one due on the 15th day of the
first month immediately following the respective grace period.

In order to guarantee
the obligations assumed under the Credit Agreement, TIM pledges to BNDES credit
rights owed by TIM under: (1) the payment of invoices by its users under the
following services: (a) online recharge for financial agents; and (b) “pós-express”;
and (2) the centralizing account and the retention account. The pledge granted
by TIM shall guarantee such company’s obligations under the Credit Agreements
Nos. 08.2.0790.1, 13.2.1372.1, 15.2.0825.1 and 17.2.0772.1, all executed with
BNDES.

The Credit Line
must be used exclusively for the acquisition of new machines, equipment,
industrial systems, components and automation and computer goods manufactured
in Brazil, accredited by the BNDES.

The Credit
Agreement contains standard positive and negative covenants.  For example, TIM
undertakes not to make improper payments (i.e., bribes) and not to
execute contracts with cross-default obligations in connection with contracts
entered into by Telecom Italia S.p.A.

In case of
default of any financial obligation, TIM will be subject to a penalty of up to
3%. In case of default of any non-financial obligation, TIM will be subject to
a penalty of 1%.

Among others, any
of the following would constitute an event of default during the term of the
Credit Agreement, for which BNDES may require acceleration of the maturity date
and repayment: (i) certain negative covenants are not complied with; (ii) there
is a final, non-appealable judgment against TIM in connection with slave or
child labor or crimes against the environment; (iii) there is a change of
control of TIM or other corporate reorganization without BNDES prior consent; (iv)
certain obligations set forth in the Credit Agreement are not complied with; or
(v) TIM uses the funds for purposes other than those set forth in the Credit
Agreement.

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