Reddy Ice to obtain $300 million loan, repay bank debt, tender for 8 7/8% notes as part of IPO

New York, Feb. 11 - Reddy Ice Holdings, Inc. said it plans to obtain a new $300 million credit facility and use proceeds along with part of the proceeds of an initial public offering of common stock to repay its existing credit facilities in full and tender for its $152 million of 8 7/8% senior subordinated notes.

The Dallas-based packaged ice company announced the refinancing plans in the S-1 registration statement for its IPO, filed Friday with the Securities and Exchange Commission.

According to the filing, the company plans to sell up to $230 million of common stock via bookrunners Bear, Stearns & Co. Inc., Lehman Brothers and Credit Suisse First Boston.

Some of the shares will be sold by existing holders; Reddy Ice expects it will receive net proceeds of $127.9 million.

The new $300 million credit facility will be made up of a $60 million revolver and a $240 million term loan. Terms are expected to be similar to the existing facility except that the new loan will allow Reddy Ice to pay dividends on its stock.

As of Sept. 30, Reddy Ice's existing credit facility had $178.2 million outstanding. The revolver is due Aug. 15, 2008 while the term loan matures Aug. 15, 2009.

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