Homex Announces Not To Execute Its Capital Increase Plan During 2010
CULIACAN, SINALOA, Mexico, Feb. 3 /PRNewswire-FirstCall/ -- Desarrolladora Homex, S.A.B. de C.V. (Homex or the Company) (NYSE: HXM, BMV: HOMEX) announced that during the Board of Directors meeting held on Friday, January 29th, the Board along with the Company's Management team, and according to Homex' shareholders approved faculties at the General Extraordinary Shareholders' Meeting held on November 20th, resolved not to execute its Capital Expansion Plan during 2010.
The Company decided to cancel the plan after successfully concluding the private placement of US$250 million bond through which Homex has extended its average debt maturity profile from an average of 4.5 years to an average of 6.3 years, thus importantly reducing its need for capital, while maintaining its financial ratios and improving the Company's liquidity.
"As we walk into 2010, I feel confident that Homex is well prepared to tap new and exciting opportunities, and that we have taken the appropriate steps at the right time to maintain a sound balance sheet, positioning us to gain market share and prudently broaden the scope of our operations," said Gerardo de Nicolas, Chief Executive Officer of Homex. "In addition, the challenging economic environment experienced during 2009, encouraged us to keep working diligently to improve our efficiency and strengthen our financial performance during 2010," concluded de Nicolas.
About HomexDesarrolladora Homex, S.A.B. de C.V. is a leading, vertically integrated home-development company focused on affordable entry-level and middle-income housing in Mexico. It is one of the most geographically diverse homebuilders in the country. Homex has a leading position in the top four markets in the country, is the largest homebuilder in Mexico, based on the number of homes sold, accumulated revenues and net income, and the only company in the sector with its shares fully listed in the New York Stock Exchange. Desarrolladora Homex, S.A.B. de C.V. press releases, 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 you 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. For additional corporate information please visit the Company's web site at: www.homex.com.mx SOURCE Desarrolladora Homex, S.A.B. de C.V.
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