Mexico’s Homex secures Ps. 500 million revolver to accelerate projects

By Caroline Salls

Pittsburgh, Jan. 22 – Desarrolladora Homex, SAB de CV signed a contract for a Ps. 500 million 10-year revolving credit facility with Proyectos Adamantine, SA de CV, Sofom, ENR based on judicial approval received in October, according to a news release.

“The revolving credit facility will enable Homex to accelerate the completion of housing projects during the company’s reorganization process and into the future,” chief financial officer Carlos Moctezuma said in the release.

“This revolving facility could potentially finance the construction of more than 5,000 homes per year over the life of the credit line. We expect the first disbursement from the credit facility to be made shortly.”

Interest on the facility will be 12%.

The company said revolver proceeds will be used to develop housing projects that are approved by Adamantine’s credit committee.

Each project funded with the credit facility will be placed into a guarantee trust, the release said. Adamantine will then disburse loan proceeds to this trust, and the trust will make payments to suppliers.

During Homex’s concurso mercantil proceeding, judicial approval may be required on each initial loan for any specific project to be funded by the credit facility.

Homex said it will be responsible for building and marketing the housing units, with all sales proceeds collected by the trust to be distributed to relevant parties, including Adamantine and Homex, according to a payments waterfall provided in the trust.

The company said its conciliador recognized that this credit facility constitutes an “indispensable credit to maintain the normal operation” of Homex and its subsidiaries under Mexico’s Ley de Concursos Mercantiles. The conciliador approved the transaction.

Homex is a Culiacan, Mexico-based homebuilder focused on affordable entry-level and middle-income housing in Mexico and Brazil.

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