Reddy Ice tenders for 8 7/8% notes

New York, March 23 - Reddy Ice Group, Inc. said it has begun a cash tender offer for its $152 million principal amount of 8 7/8% senior subordinated notes due 2011.

The Dallas ice maker is also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

The consent deadline to receive the consent payment is 5 p.m. ET on April 5, and the tender ends at 5 p.m. ET on April 21.

Reddy Ice will pay 35% of the equity clawback price of $1,088.75 per $1,000 principal amount plus 65% of the fixed spread price. The fixed spread price is the present value on the payment date of all future cash flows on the notes to their first call date on Aug. 1, 2007 minus accrued interest up to but excluding the payment date based on 75 basis points over the bid-side yield on the 3.25% U.S. Treasury note due Aug. 15, 2007 at 2 p.m. ET on April 6.

The total includes the $20 per $1,000 consent payment.

Holders will also receive accrued interest up to but excluding the payment date.

The tender is subject to a majority of the notes being tendered and Reddy Ice having the sufficient funds for the tender from a new senior credit facility and an initial public offering of stock by parent company Reddy Ice Holdings, Inc.

Credit Suisse First Boston LLC is dealer manager and solicitation agent (contact Liability Management Group at 800 820-1653 or call collect 212 538-0652). Morrow & Co., Inc. is the information agent (800 654-2468 or call collect 212 754-8000).

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