Reddy Ice unit to launch exchange offer, consent bid for 10½% notes

By Susanna Moon

Chicago, Feb. 19 - Reddy Ice Holdings, Inc. said its wholly owned subsidiary Reddy Ice Corp. plans to offer to exchange in a private placement its new senior secured notes for the company's outstanding 10½% senior discount notes due 2012.

Reddy Corp. will solicit consents to amend the notes to eliminate substantially all of the restrictive covenants and some events of default, according to a company press release.

Holders tendering the notes for exchange will be deemed to have consented to the proposed amendments, and holders may not deliver consents without tendering their notes.

The exchange offer and consent solicitation will expire at midnight ET on March 19.

Tendered notes may be withdrawn by 5 p.m. ET on March 5, the early tender date.

The offer requires that Reddy Corp. enter into a new revolving credit facility and the termination and repayment of all debt under the existing credit facility, the release noted. Reddy Corp. must also issue first-lien notes with proceeds sufficient to refinance its credit facility.

Reddy Corp. said it has the right to waive these conditions or to terminate or withdraw the exchange offer and consent solicitation at any time and for any reason prior to the fulfillment or waiver of the conditions to the offer.

The exchange offer and consent solicitation will be made only to qualified institutional investors.

Reddy Ice is a Dallas-based manufacturer and distributor of packaged ice.

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