CIBC World Markets, Credit Suisse First Boston and Bear Stearns were scheduled to hold a conference call last Friday to launch syndication of a $45 million add-on "B" piece for Reddy Ice Group. The added debt, which will tack onto an existing $135 million "B" loan, will support the company's acquisitions of Lumberton, N.C.-based Triangle Ice Co. and Orlando, Fla.-based Service Ice, confirmed executive v.p. and cfo, Steven Janusek. Pricing for the add-on will be LIBOR plus 3%, keeping in line with the existing institutional debt, said a banker familiar with the deal. The credit, which was completed last August, also includes a $35 million revolver.
The existing credit was put in place over the summer to back the acquisition of what was then called Packaged Ice for $450 million by Trimaran Capital Partners and Bear Stearns Merchant Banking (LMW, 8/25). The Service Ice acquisition closed last week, whereas the Triangle Ice deal is set to complete at the end of the month, contingent upon execution of a definitive stock purchase agreement, financing and regulatory approval. Triangle Ice's annual revenues are about $40 million, whereas Service Ice has annual sales of about $4 million. A Bear Stearns official declined to comment. CIBC and CSFB bankers did not return calls.