Terreal Signs Lender-led Restructuring

Park Square Capital, an independent provider of credit products in Europe, has signed a lender-led restructuring of Terreal Group. The business is a French manufacturer of clay building materials. At the completion of the restructuring, Terreal’s lenders will convert a significant portion of its debt into equity and become the sole shareholders of Terreal, with Park Square emerging as the largest institutional shareholder.


Park Square Capital, LLP (“Park Square”), a leading independent provider of credit products in Europe, announces today the signing of a lender-led restructuring of Terreal Group (“Terreal”), a leading French manufacturer of clay building materials, aimed at significantly reducing the company’s financial debt. Park Square, the largest institutional lender to Terreal, led the restructuring in a process that required unanimous agreement between Terreal’s lenders, shareholders and management team. At the completion of the restructuring, Terreal’s lenders will convert a significant portion of its debt into equity and become the sole shareholders of Terreal, with Park Square emerging as the largest institutional shareholder.

Park Square accumulated its position in Terreal’s debt at a significant discount over several years, developing a strong relationship with management and the syndicate of senior lenders and facilitating a unique, consensual restructuring. Park Square is currently the second largest lender to Terreal and upon completion of the restructuring will become its second largest shareholder. Terreal’s existing management team will remain a meaningful shareholder through a restructured management incentive plan.

Park Square, in conjunction with ING Bank, led the co-ordinating committee of senior lenders of Terreal to develop a restructuring plan that met several key requirements:

– Financial stability, through significantly reduced interest costs and leverage, which enables Terreal to demonstrate to customers and trade partners a sustainable capital structure, thus allowing management to focus all of its efforts in maximising operational performance and expanding the business

– Operating flexibility, through a long-dated debt maturity, no debt amortisation, and a covenant holiday, all of which will allow time for Terreal to regain its growth path and profitability upon a cyclical recovery of the industry

– An improved governance structure, comprising independent directors with strong industrial, financial and commercial expertise

Robin Doumar, Managing Partner, Park Square, commented:

“Park Square Capital has been pleased to work closely with Terreal’s high quality management team and the group of lenders during the financial restructuring.

“Lender-led transactions are rare in France, due to the unanimous agreement required from lenders, sponsors and management; however, Park Square’s long-standing knowledge of Terreal and its management facilitated this consensual approach.

“We see lender-led restructurings as being efficient and beneficial for all parties, and we intend to increase our focus on this type of transaction in the years to come, in order to replicate the positive outcome with other special situations.”

Hervé Gastinel, President of the Management Board of Terreal, added:

“We have a long-standing relationship with Park Square, and we are confident that this lender-led restructuring is the best outcome for Terreal.

“The financial restructuring of the business will allow us to pursue a consistent operational strategy, providing a high level of continuity for our customers and suppliers, as well as for our employees.”

– Ends –


College Hill 020 7457 2020
Antonia Coad / Chantal Hadley

Notes to Editors

Park Square Capital, LLP

Established in 2004, Park Square Capital is one of Europe’s leading credit investors, managing and advising over $3.2 billion of capital. Headquartered in London, Park Square is a specialist dedicated to European credit, fielding one of the largest credit teams in Europe. As an independent firm wholly owned by its investment team, Park Square is a trusted partner to Europe’s leading private equity sponsors, companies and management teams.
Park Square seeks to provide attractive risk-adjusted returns through a selective, value-orientated approach to credit investing and the flexibility to invest across senior secured and subordinated debt, special situations and distressed credit across its different fund strategies. It counts amongst its investors the world’s leading public and private pension funds, sovereign wealth funds, insurance companies and asset managers.


Terreal is a leading international manufacturer of clay building materials and building envelope solutions including roofing, cladding and structural materials. The Company was created in 2000 after the merger of 3 French brick and tile manufacturers – Lambert, TBF and Guiraud – and was divested by Saint-Gobain Group in 2003.

Headquartered in Suresnes, France, Terreal employs 2,700 people across 25 industrial sites in France, the United States, Spain, Italy, Malaysia and Indonesia. The Company also operates sales offices in the United Kingdom, Belgium, China, Singapore and Brazil.