Reddy Ice obtains tenders for exchange covering 92.2% of 10½% notes

By Jennifer Chiou

New York, March 22 - Reddy Ice Holdings, Inc. said that its subsidiary Reddy Ice Corp. received total tenders and consents for 92.2% of its 10½% senior discount notes due 2012.

The exchange offer expired at midnight ET on March 19.

By the early tender date of March 5, holders had tendered $136.9 million, or 91%, of the 10½% notes, which were exchanged for 13¼% senior secured notes due 2015.

Upon the issuance of $137.6 million of the second-lien notes on March 15, the amendments to the 10½% notes became operative.

The company had previously announced on March 3 that it received the necessary consents to amend the notes.

The consent solicitation was to amend the notes to eliminate substantially all of the restrictive covenants and some events of default.

For each $1,000 principal amount of old notes, the company issued an equal amount of new 13¼% senior secured notes due 2015 of Reddy Corp. plus an additional $5.00 principal amount of new notes for those who tendered prior to the early tender date.

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

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

Reddy Corp. said it had the right to waive the conditions or to terminate or withdraw the exchange offer and consent solicitation at any time and for any reason.

At a previous announcement, Reddy Ice said that as of 5 p.m. ET on March 2, holders had tendered 52.53% of the old notes, reaching the threshold for the minimum tender condition.

Following the offer, $11.7 million of the notes will remain outstanding.

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

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