Monier Roofing caves in for PAI

PAI partners has resigned itself to losing its investment in portfolio company Monier (formerly Lafarge Roofing).

Under pressure from an unmanageable debt, the private equity house is set to write off its investment after declining to increase its restructuring offer. Instead, the Monier management team had backed a restructuring proposal put forward by the 140 lenders led by opportunist investors Apollo Management, TowerBrook Captial and York Capital.

PAI purchased Monier in February 2007 for EUR2.4bn at what was the peak of the credit market. PAI had sought to hold on to a significant stake in the company by offering first to cede a minority and then majority of the capital for a debt-for-equity swap as well as new cash, but the offer was not accepted.

The creditors proposal will see an injection of EUR150m in capital as well as offering two more EUR50m credit lines while the EUR1.8bn debt would be reduced to close to EUR1bn. The deal is set to be completed before the next test of covenants (see page 16).

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