Reddy Ice Holdings Inc. has reached an agreement with affiliates of GSO Capital Partners LP to terminate the merger agreement dated July 2, 2007, by Reddy Ice; Frozen LLC, a Delaware limited liability company; and Hockey Parent Inc. and Hockey Mergersub Inc., both Delaware corporations.
Reddy Ice and affiliates of GSO have entered into a settlement agreement under which Reddy Ice will be paid $21 million in cash to terminate the merger agreement. The company has agreed to pay up to $4 million of fees and expenses incurred by GSO and its third-party consultants in connection with the contemplated transactions.
William P. Brick, Reddy Ice chairman and chief executive officer, said, "In recent weeks, the company and GSO have negotiated in good faith to craft an alternative transaction. Ultimately, due to the condition of the financing markets, no definitive proposal for a modified buyout transaction was presented, and the parties were not able to reach agreement on any other alternative transaction. Nonetheless, we will continue to explore transactions with GSO and to review other alternatives available to the company."
