Reddy Ice Holdings today announced that, having closed its previously announced financing arrangements, it has consummated its voluntary Chapter 11 reorganization. Effective today, the company emerged from Chapter 11 protection substantially de-levered and with a capital structure that provides the financial flexibility to further invest in the long-term growth of its business. The company is now majority owned by Centerbridge Partners.
Holdings is the largest manufacturer and distributor of packaged ice in the United States. With approximately 1,500 year-round employees, the company sells its products primarily under the widely known Reddy Ice brand to a variety of customers in 34 states and the District of Columbia. The company provides an array of product offerings in the marketplace through traditional direct store delivery, warehouse programs and its proprietary technology, The Ice Factory. Reddy Ice serves most significant consumer packaged goods channels of distribution, as well as restaurants, special entertainment events, commercial users and the agricultural sector. Reddy Ice is based in Dallas, TX (www.reddyice.com).
Completing its in-court recapitalization in just 50 days, Reddy Ice has successfully reduced its debt by approximately 32% percent, or $145 million. As part of this process, the company secured a $50 million revolving credit facility from Macquarie Bank Limited. The company also received approximately $25 million in new equity capital infusions, including a $7.5 million preferred stock investment by Centerbridge and a $17.5 million preferred stock rights offering to holders of the company’s pre-petition second lien secured notes backstopped by Centerbridge.
DLA Piper served as the company’s legal advisor, and Jefferies & Company served as the company’s financial advisor in connection with the restructuring. Kirkland & Ellis is acting as legal advisor to Centerbridge in connection with the restructuring.
“This is a very positive event for Reddy Ice and we are proud and excited to begin our partnership with Centerbridge and other stakeholders. We greatly appreciate the support of our employees, customers and suppliers throughout Reddy Ice’s restructuring process,” said Gilbert M. Cassagne, the Company’s Chairman, CEO and President.