Kaufman & Broad Announces the Closing of the Refinancing of Its Syndicated Bank Debt (“Senior Debt”)

Regulatory News:

KAUFMAN AND BROAD S.A. (Paris:KOF) (THE “COMPANY”) ANNOUNCES THE CLOSING OF THE REFINANCING OF ITS SENIOR DEBT BY MEANS OF A NEW SENIOR facilities agreement for a total amount of €200,000,000 (the “New Senior Facilities Agreement”) which will replace its existing Senior Debt.

Successful completion of refinancing

The implementation of the New Senior Facilities Agreement was conditioned on the success of the refinancing by its majority shareholder, Financière Gaillon 8 SA, which closed today. Financière Gaillon 8 SA issued €370,000,000 aggregate principal amount of Senior Notes due 2019 (the “Senior Notes”). The Senior Notes will bear interest at an annual rate of 7.00%. A portion of the net proceeds from the issuance and the sale of the Senior Notes will be used to prefund the interest payable on the Senior Notes for the first interest period.

The New Senior Facilities Agreement will mature in five years and includes:

• a new Revolving Credit Facility of up to €50,000,000 aggregate principal amount; and
• a new senior credit facility of €50,000,000 aggregate principal amount available under a Facility A tranche (“Facility A”) and of €100,000,000 aggregate principal amount available under a Facility B tranche (“Facility B”).

The Company has drawn the full amounts available under Facility A and Facility B, for a total of €150,000,000, and has applied these amounts, along with available cash, to fully repay debt outstanding under its existing senior credit facilities dated July 9, 2007 (as amended). As of the date hereof, the Company has not drawn on its new revolving credit facility.

About Kaufman & Broad SA

For more than 40 years, Kaufman & Broad has been designing, supervising the construction of and selling single-family homes in communities, apartments and offices on behalf of third parties. Kaufman & Broad is a leading French property builder and developer in view of our size, earnings and the power of our brand.

For more information about Kaufman & Broad SA: www.ketb.com.

Important Notice

This press release and the information contained herein do not constitute an offer to sell or subscribe for, nor the solicitation of an order to purchase or subscribe for, securities in the United States of America or in any other country.

This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in which, or to any persons to whom, such an offer, solicitation, or sale is unlawful. The securities mentioned herein have not been, and will not be, registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements under the Securities Act and applicable state securities laws.

This press release is neither an offer to sell nor a solicitation of an offer to buy any of the securities described herein, and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, any of the securities described herein or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

This press release does not constitute or form part of an offer or solicitation of an offer to purchase or subscribe for securities in France. The securities described herein have not been offered and will not be offered or sold, directly or indirectly, to the public in France. Any offer of such securities or distribution of any offering material relating to such securities will be made only to (i) persons providing investment services relating to portfolio management for the account of third parties (personnes fournissant le service d’investissement de gestion de portefeuille pour compte de tiers) and/or (ii) qualified investors acting for their own account as defined under articles L. 411-2 et D. 411-1 of the French Monetary and Financial Code and in accordance with articles L. 411-1 et L. 411-2 of the French Monetary and Financial Code.

In member states of the European Economic Area which have implemented Directive 2003/71/EC (as amended) (the “Prospectus Directive”) other than France, this press release and any offer if made subsequently are directed exclusively at persons who are “qualified investors” and acting for their own account within the meaning of the Prospectus Directive and any relevant implementing measures in the relevant member state.

This press release is not an invitation nor an inducement to engage in investment activity for the purpose of Section 21 of the Financial Services and Markets Act 2000, as amended (“FSMA”). This press release is directed only at (i) persons outside the United Kingdom, (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), (iii) persons referred to in Article 49(2) (a) to (d) of the Order (high net worth entities, non-registered associations, etc.) and (iv) other persons to whom this document may be lawfully communicated (all persons listed in (i), (ii), (iii) and (iv) above being referred to as “Relevant Persons”). The securities described herein are available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person must not act or rely on this document or any of its contents.

The information contained in this press release does not constitute an offer of securities for sale in Australia, Canada or Japan. The release, publication or distribution of this press release in certain jurisdictions may be restricted by laws or regulations. Persons in such jurisdictions into which this press release is released, published or distributed must inform themselves about and comply with such laws or regulations.

Cautionary Note on Forward-Looking Statements

This document contains forward-looking objectives and statements with respect to Kaufman & Broad SA’s financial condition, results of operations, business and strategy. These objectives and statements are based on assumptions that are dependent upon significant risk and uncertainty factors that may prove to be inexact and are thus liable to be affected by known or unknown factors that Kaufman & Broad SA cannot easily control or forecast, which may render the results materially different from those stated, implied or projected by the company. These risks specifically include those listed under the heading “Risk Factors” in the Reference Document filed with the AMF on March 6, 2014 (number D.14-0121).