GSO To Pay $21M After Deal Is Frozen

Feb 4 2008 | 8:49am ET

Hedge fund GSO Capital Partners has agreed to pay $21 million to cancel its proposed acquisition of a packaged ice-maker. But the split settlement is not an indication that its interest in Reddy Ice Holdings has cooled.

The $1.1 billion deal between GSO and Reddy Ice fell apart after Morgan Stanley indicated that it might not be able to provide GSO with $700 million in credit. Under the settlement, GSO affiliates will pay Reddy Ice $21 million in cash, with Reddy Ice covering $4 million of GSO’s fees and expenses.

Reddy Ice CEO William Brick said his company will “continue to explore transactions with GSO and to review other alternatives.” He added that Reddy Ice and GSO had attempted to come up with a new plan after Morgan Stanley pulled out, but were unable to do so.

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