Reddy Ice Completes Recapitalization, Closes $50 Million Revolver
Reddy Ice Holdings, Inc. announced that, having closed its previously announced financing arrangements, it has consummated its voluntary Chapter 11 reorganization. On May 31, the company emerged from Chapter 11 protection substantially delevered and with a capital structure that provides the financial flexibility to further invest in the long-term growth of its business. The company is now majority owned by affiliates of Centerbridge Partners, L.P.
“This is a very positive event for Reddy Ice and we are proud and excited to begin our partnership with Centerbridge and other stakeholders. We greatly appreciate the support of our employees, customers and suppliers throughout Reddy Ice’s restructuring process,” said Gilbert M. Cassagne, the company’s chairman, CEO and president.
Completing its in-court recapitalization in just 50 days, Reddy Ice has successfully reduced its debt by approximately 32%, or $145 million. As part of this process, the company secured a $50 million revolving credit facility from Macquarie Bank. The company also received approximately $25 million in new equity capital infusions, including a $7.5 million preferred stock investment by Centerbridge and a $17.5 million preferred stock rights offering to holders of the company’s pre-petition second lien secured notes backstopped by Centerbridge.
DLA Piper LLP (US) served as the company’s legal advisor, and Jefferies & Company, Inc. served as the company’s financial advisor in connection with the restructuring. Kirkland & Ellis LLP is acting as legal advisor to Centerbridge in connection with the restructuring.
Reddy Ice Holdings, Inc. is a manufacturer and distributor of packaged ice in the United States.
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