S&P: Reddy Ice on watch

Standard & Poor's said it placed all ratings on Reddy Ice Holdings Inc. and its wholly owned operating subsidiary, Reddy Ice Corp., including the B+ corporate credit rating on Holdings, on CreditWatch with negative implications.

The agency said that the CreditWatch listing follows the company's announcement that it has entered into a definitive merger agreement to be acquired by certain funds managed by GSO Capital Partners L.P. in a $1.1 billion transaction.

Under the merger agreement, S&P said that the company may solicit proposals for alternative transactions from third parties for a 45-day period ending Aug. 16.

Although financing details have yet to be disclosed, the agency said it expects that Reddy Ice's leverage will increase and that its credit measures will weaken to below current levels.

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