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Friday, February 1, 2008

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

By Pegasus News wire

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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.

Reddy Ice was caught unawares by the sudden cancellation

Photo not provided by Reddy Ice

Reddy Ice was caught unawares by the sudden cancellation

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

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Comments

Aaron Johnson Verified

I'm having a difficult time fully understanding who is being referred to in the first paragraph when they say "'the company' has also agreed to pay $4 million". Are you referring to GSO partners or Reddy ice?

5 months, 2 weeks ago ( Link to this comment | Suggest removal )

Scott Doyle

Scott Doyle Verified

Sounds to me like they're referencing Reddy Ice. Primarily b/c it's the company the article's about, but also b/c I don't see why GSO would pay fees & expenses they already incurred...again.

Either way, getting paid $21M to simply terminate an agreement? Must be nice.

5 months, 2 weeks ago ( Link to this comment | Suggest removal )

Todd Maternowski

Todd Maternowski Staff

You are correct, sir, "the company" refers to Reddy Ice, which will pay GSO the fees for the termination.

5 months, 2 weeks ago ( Link to this comment | Suggest removal )

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