Reddy Ice gets required consents for 10½% notes

By Jennifer Chiou

New York, July 29 - Reddy Ice Holdings, Inc. said it received the necessary consents from holders of $151 million principal amount at maturity of its 10½% senior discount notes due 2012.

As of the expiration date of 5 p.m. ET on July 28, holders of 97.7% had given consents to amend the indenture.

Amendments to remove restrictive covenants will be effective after the consent payment is distributed.

The offer is conditioned upon Reddy Ice having enough funds generated from its initial public offering to pay the consent payment.

On July 25, Reddy Ice increased the payment on offer in the solicitation to $12.50 in cash per $1,000 accreted value of the notes from $5.00 per $1,000. It also extended the expiration date from the original July 26 set when the solicitation was announced on July 20.

As of July 19, the accreted value of the notes was $714.62 per $1,000 principal amount at maturity.

Reddy Ice issued the 10½% notes in October 2004, selling $151 million at 66.333 for $100.16 million in proceeds.

On June 24, the Dallas ice maker announced it was again extending the expiration of its tender offer for its $152 million of 8 7/8% senior subordinated notes due 2011.

The information agent is Morrow & Co., Inc. (800 654-2468 or collect 212 754-8000). Bear, Stearns & Co. Inc. is the solicitation agent (877 696-2327).

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