DALLAS, May 31, 2012 /PRNewswire/ -- Reddy Ice Holdings, Inc. (the "Company") 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 delevered 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 affiliates of Centerbridge Partners, L.P. ("Centerbridge").
"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.
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 LLP (US) served as the Company's legal advisor, and Jefferies & Company, Inc. served as the Company's financial advisor in connection with the restructuring. Kirkland & Ellis LLP is acting as legal advisor to Centerbridge in connection with the restructuring.
ABOUT REDDY ICE
Reddy Ice Holdings, Inc. 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 a broad 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.
This press release contains various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's belief as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements contain certain risks, uncertainty and assumptions. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected.
SOURCE Reddy Ice Holdings, Inc.