Cube Corp. Seals Ice Deal

  • 24 Aug 2003
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Cube Acquisition Corp., an entity controlled and created by Trimaran Capital Partners and Bear Stearns Merchant Banking, has closed on a $170 million credit backing the $450 million acquisition of Packaged Ice. The deal's $135 million "B" loan was heavily oversubscribed, said Bill Phoenix, managing director at Trimaran, noting that pricing on the tranche was flexed down from LIBOR plus 31/2% to LIBOR plus 3% during syndication. Pricing on the "B" loan is also tied to a leverage-based grid with step-down provisions to the LIBOR plus 23/4% pricing level, he added. The deal also includes a $35 million revolver. There is a $150 million high-yield component included in the acquisition, he noted.

The credit for Packaged Ice (now renamed Reddy Ice Group) is led by CIBC World Markets, Credit Suisse First Boston and Bear Stearns. CIBC is on the left for the bank deal, while CSFB leads the bonds, Phoenix said. CIBC Capital Partners--which is responsible for all the principal investing activities of CIBC World Markets--is a major investor in and strategic partner of Trimaran's. CSFB and US Bancorp Piper Jaffray advised Reddy Ice on the transaction.

"We are very excited about the company [and] the company's prospects...We have a very solid management team to take this company forward," Phoenix said. The two controlling buyout firms are equal equity partners in the transaction.

 

  • 24 Aug 2003

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2 Bank of America Merrill Lynch (BAML) 6,103 21 10.16
3 Citi 5,130 13 8.54
4 JP Morgan 4,681 6 7.79
5 Morgan Stanley 4,137 11 6.89

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4 JPMorgan 52,873.25 155 7.67%
5 Credit Suisse 44,197.08 113 6.41%