Arctic Glacier USA to use $85 million of mezzanine debt for buyout

By Lisa Kerner

Charlotte, N.C., June 27 - Arctic Glacier USA Inc. will use $85 million of mezzanine debt to held fund the buyout of the company by H.I.G. Capital, according to a market source.

Additional funding is expected to come from a proposed $225 million credit facility.

Closing is expected by July 31, subject to approvals - including from the U.S. Bankruptcy Court for the District of Delaware - and the satisfaction of certain customary conditions.

Sale proceeds are expected to be sufficient to pay all of the company's remaining known creditors and may be enough to permit a distribution to its unitholders after all creditor claims have been satisfied.

Arctic Glacier is a Winnipeg, Man.-based producer, marketer and distributor of packaged ice.

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