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$US70 million debtor-in-possession (DIP) financing for Reddy Ice Corporation

Dallas, 01 May 2012

Macquarie CAF Lending completed a $US70 million debtor-in-possession (DIP) financing for Reddy Ice Corporation (Reddy Ice).

Challenging market conditions resulted in the Dallas-based company pursuing a debt-restructuring deal with its creditors. 

Reddy Ice filed for Chapter 11 bankruptcy protection in April 2012 with a restructuring plan that was supported by Macquarie and the majority of its creditors. As an incumbent lender, Macquarie drew on its familiarity with the borrower and the North American packaged ice market to provide a customised financing solution that met the company's needs. 

Working closely with Reddy Ice in advance of the bankruptcy proceedings, Macquarie provided a $US70 million DIP commitment supported by a commitment to provide $US50 million in exit financing to fund the company's emergence from bankruptcy. The custom-built solution allowed Reddy Ice to continue to operate and positioned the company to emerge from bankruptcy on an accelerated timeline to capitalise on strategic opportunities. 

Macquarie's ability to respond and execute a transaction in a relatively short timeframe was critical to facilitate the company's plan to exit bankruptcy quickly. Reddy Ice's plan of reorganisation was confirmed on 18 May 2012 and the company intends to exit bankruptcy in late May.