Reddy Ice gets debt commitment from Morgan Stanley for buyout by GSO

By Sara Rosenberg

New York, July 2 - Reddy Ice Holdings Inc. has received a debt financing commitment from Morgan Stanley to help back its buyout by GSO Capital Partners LP, according to a company news release.

Under the terms of the agreement, Reddy Ice stockholders will receive $31.25 per share in cash. The total value of the transaction is $1.1 billion.

The deal is expected to close in the fourth quarter, subject to stockholder approval and customary closing conditions.

In addition, the company announced on Monday that it lowered its annual revenue, EBITDA and net income guidance for 2007 due to abnormally adverse weather during the second quarter in several of its major markets, including Texas and Oklahoma.

Under the revised guidance, revenues in 2007 are expected to range between $350 million and $360 million, net income is expected to range from $16.3 million to $20.4 million, diluted net income per share is expected to be in the range of $0.74 to $0.93 and adjusted EBITDA is expected to be in the range of $90 million to $95 million.

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

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