On Oct. 5, GSO Capital Partners LP informed Reddy Ice Holdings Inc., an ice purveyor that GSO agreed in July to buy for $1.1 billion, that it planned to extend the marketing period for the deal's $775 million debt package through Jan. 31. That seemingly minor detail could have repercussions because of a veiled threat by debt underwriter Morgan Stanley in September to walk away from the deal because of an earlier clash over when to market the debt. At the time, Morgan Stanley said that because GSO and Reddy Ice had extended the original marketing dates without the bank's blessing, they'd breached the financing agreement. A Morgan Stanley spokeswoman did not return a call seeking the bank's reaction. — David Carey
See TheDeal.com story Sept. 13 about Morgan Stanley threatening to pull out
See TheDeal.com July 2 story about the deal.
Continue reading below
