Dallas-based Reddy Ice Holdings’ $1.1 billion buyout terminated

by PegNews wire

DALLAS — Reddy Ice Holdings, Inc. announced today that its $1.1 billion merger agreed to last July has been terminated. Reddy Ice and affiliates of GSO Capital Partners LP have entered into a settlement agreement pursuant to which Reddy Ice will be paid $21 million in cash on February 5, 2008 to terminate the Merger Agreement. The company has also agreed to pay up to $4 million of fees and expenses incurred by GSO and its third-party consultants in connection with the contemplated transactions.

William P. Brick, Reddy Ice's Chairman and Chief Executive Officer, said, "In recent weeks, the company and GSO have negotiated in good faith to craft an alternative transaction. Ultimately, due to the condition of the financing markets, no definitive proposal for a modified buyout transaction was presented and the parties were not able to reach agreement on any other alternative transaction. Nonetheless, we will continue to explore transactions with GSO and to review other alternatives available to the company."

Mr. Brick continued, "We are moving forward and executing on Reddy Ice's long-term business strategy. We are disappointed that the merger could not be consummated, but the Company will continue to focus on delivering value for its stockholders and customers. I thank our stockholders and employees for their continued loyalty to the company."

Source: Reddy Ice