Homex Announces Preliminary Agreement for a Ps.500 Million Revolving Credit Facility

Desarrolladora Homex, S.A.B. de C.V. (“Homex” or the Company”) [NYSE:HXM, BMV:HOMEX] announced today that it has entered into a preliminary, non-binding agreement for a Ps.500 million, 10-year revolving credit facility with Proyectos Adamantine, S.A. de C.V., SOFOM, E.N.R. (“Adamantine”). Adamantine is a Mexican financial institution specializing in mortgage lending and administration. Under the terms of the agreement the revolving credit facility will bear an annual interest rate of 12.0%.

Proceeds under the credit facility will be used to develop certain Homex housing projects, subject to being approved by Adamantine’s credit committee. Each project funded with the credit facility will be placed into a guarantee trust administered by a trustee. Adamantine will then disburse loans’ proceeds to this trust, and the trust will make payments to suppliers. Homex will be responsible for building and marketing the housing units, with all sales proceeds collected by the trust.

“This transaction is an important first step in restarting the Company’s housing development activity and improving our liquidity position. In addition, we will continue working with our existing lenders and other parties to reactivate or replace our other credit lines so that we can restart additional projects and bring our reorganization to a successful conclusion. In the meantime we are refining our business plan to take into account developments since we made our original business plan available on our IR website in May 2014, including this financing progress, and currently anticipate finalizing an updated business plan before the end of the year,” commented Carlos Moctezuma, Chief Financial Officer of Homex.

The Adamantine credit facility is subject to the completion and execution of definitive documentation. Homex’s Conciliador, in the Company’s ongoing reorganization, recognized that the Adamantine credit facility constitutes an “indispensable credit to maintain the normal operation” of Homex and its subsidiaries under Mexico’s Ley de Concursos Mercantiles, and approved Homex entering into the credit facility.

About Homex

Desarrolladora Homex, S.A.B. de C.V. is a vertically integrated home-development company focused on affordable entry-level and middle-income housing in Mexico.

Desarrolladora Homex, S.A.B. de C.V. quarterly reports and all other written materials may from time to time contain statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Forward-looking statements involve inherent risks and uncertainties. We caution investors that a number of important factors can cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include economic and political conditions and government policies in Mexico or elsewhere, including changes in housing and mortgage policies, inflation rates, exchange rates, regulatory developments, customer demand and competition. For those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our filings with the Securities and Exchange Commission.