Reddy Ice sets talk on first- and second-lien term loans with launch

By Sara Rosenberg

New York, March 12 - Reddy Ice Corp. released price talk on its $225 million six-year covenant-light first-lien term loan (B1/B) and $120 million 61/2-year covenant-light second-lien term loan with its Tuesday bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 550 basis points to 575 bps with a 1.25% Libor floor and an original issue discount of 981/2, and the second-lien term loan is talked at Libor plus 950 bps to 975 bps with a 1.25% Libor floor and a discount of 98, the source said.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $395 million credit facility also provides for a $50 million five-year revolver.

Commitments are due on March 26, the source added.

J.P. Morgan Securities LLC and Jefferies Finance LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Reddy Ice is a Dallas-based manufacturer and distributor of packaged ice products.

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