SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934

For the month of August, 2018

Commission File Number 1-34129



CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
(Exact name of registrant as specified in its charter)



BRAZILIAN ELECTRIC POWER COMPANY
(Translation of Registrant's name into English)



Avenida Presidente Vargas, 409 - 13th floor,
Edifício Herm. Stoltz - Centro, CEP 20071-003,
Rio de Janeiro, RJ, Brazil
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No___X____


 

  

RELEVANT FACT

 

CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26

PUBLIC COMPANY

 

Centrais Elétricas Brasileiras S/A (“Company” or “Eletrobras”) hereby informs the shareholders and the market in general, in addition to the Market Announcement released on August 14, 2018, that, on August 20, 2018, the Company's Board of Directors approved the Eletrobras No. 01/2018 Auction Notice for the sale of 71 equity interests in Special Purpose Companies (SPE), assembled in 18 lots, scheduled to be held at 10:00 am on September 27, 2018, at B3 S.A. - Brasil, Bolsa, Balcão, at Rua XV de Novembro, No. 275 - São Paulo - SP. The call notice is available at www.eletrobras.com.

 

The initiative to sell the stakes in SPEs is part of the "Financial Discipline" pillar, one of the five pillars established in the Company's Business and Management Master Plan for the 2018-2022 five-year period, approved by the Company's Board of Directors on December 15, 2017 and widely disclosed to the market through the Relevant Fact published on December 17, 2017 ("PDNG").

 

The purpose of this operation is to enable Eletrobras and its subsidiaries to reduce their financial leverage, reducing their Net Debt/EBITDA indicators to the levels usually practiced by the market.

 

Bank Credit Suisse was hired by Eletrobras to provide advisory services for the sale of the equity interests.

 

The Company will keep the market informed about the subject matter of this Relevant Fact.

 

 

 

 

Rio de Janeiro, August 21, 2018.

 

 

Armando Casado de Araujo

CFO and Investor Relations Officer

 

 

                                                                                               

 

 
 

SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 21, 2018
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
By:
/SArmando Casado de Araujo
 
Armando Casado de Araujo
Chief Financial and Investor Relation Officer
 
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.