MONIER Group successfully completes restructuring negotiations and receives formal lender approval

Monday 06, July 2009

 

• Reduction in cash pay debt by more than half and commitment from lenders to provide a €150 million new credit line

• Agreement seeks to secure long-term financial basis of the Group which underpins Monier’s operational relationships with customers and suppliers

• Upon completion of the restructuring, the senior lenders will control the Monier Group

• Combined with cost savings measures implemented as part of Monier’s long term strategic plan, as a result of the financial restructuring, Monier will emerge in a strengthened position as market leader in its industry, with an efficient cost structure

• The lender led financial restructuring plan is intended to allow Monier to manage through the current downturn and seeks to ensure long term recovery for lenders

Monier Group (“Monier” or the “Group”), the world’s leading provider of building materials for pitched roofs and chimney systems, has reached an agreement with key stakeholders to effect a financial restructuring of the Group after successfully concluding negotiations with the Steering Committee appointed by senior lenders. The Board of Directors of the holding company of Monier Group has also unanimously approved the financial restructuring plan.

Formal approval by the requisite majority of Monier’s lender group has been obtained (more than 2/3 of first and second lien lenders and more than 75% of first lien lenders), and additional formal approvals are expected to be received within the next few days.

The restructuring contains the following elements:

• Lenders agree to a reduction in cash pay debt by more than half and reduced cash interest expense by approximately 80%
• Senior lenders commit to jointly provide a €150 million new credit line
• The senior lenders will become the new shareholders of Monier
• Apollo Global Management, LLC (“Apollo”), TowerBrook Capital Partners LLP (“TowerBrook”) and York Capital Management (“York”) (jointly “ATY”), three international investment firms will be the largest shareholders post restructuring

The Group Management Board of Monier, comprising three senior executives, will remain unchanged and will continue to deploy its strategy to maximise Monier’s financial and operational performance in order to enhance the Group’s position as a global leader in roofing materials.

Monier management, the Steering Committee and ATY are confident that the restructuring agreement provides a stable, long-term financial basis for Monier, which will underpin and strengthen Monier’s relationships with customers and suppliers.

Pepyn Dinandt, CEO of Monier Group, commented: “The agreement illustrates that lenders are prepared to invest in fundamentally robust companies. In recent months, we have taken successful and significant operational measures and positioned Monier for the future. We can now look forward to further strengthening our position as a market leader.”

The lender led financial restructuring plan is based on a broad consensus on the future strength and opportunities for Monier. Despite the difficult market environment and the general economic crisis, Monier has already been able to strengthen its market leading position in several of its core markets.

Legal measures to implement the restructuring are expected to be taken in the coming weeks. The process is expected to be formally completed by the end of the year.

About Monier

The Monier Group is the world’s leading provider of building materials for pitched roofs, as well as a provider of innovative roofing and chimney systems. Monier has operations in 46 countries on four continents. In 2008, the Group generated revenues totalling EUR1.5 billion and had 11,155 employees. More information on: www.monier.com

Disclaimer

These written materials are not for distribution (directly or indirectly) in or to the United States. They are not an offer of securities for sale, nor a solicitation to purchase or subscribe for securities, in or into the United States.

No securities will be registered under the United States Securities Act of 1933, as amended, and securities may not be offered or sold in the United States unless they are registered under applicable law or exempt from registration. There is no intention to register any securities in the United States or to conduct a public offering of securities in the United States.

Press downloads