UPDATE 1-Reddy Ice says CEO resigning

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NEW YORK, Nov 30 (Reuters) - Reddy Ice Holding Inc (FRZ.N: Quote, Profile, Research, Stock Buzz), which has agreed to be bought by GSO Capital Partners, said on Friday its chief executive will resign on Dec. 1 and be replaced by its current chairman.

Chief Executive and President Jimmy Weaver is resigning for medical reasons, said the maker of packaged ice. Chairman and former Chief Executive William Brick will be chairman, chief executive and president.

Reddy Ice agreed to be bought by hedge fund GSO Capital Partners in July for $1.1 billion.

Since then, the subprime mortgage crisis has roiled credit markets, tightening lending terms and holding up financing for many U.S. takeovers. Reddy Ice is one of the pending deals that Wall Street arbitrage traders are eyeing with caution.

The deal's arbitrage spread -- a measure of the percentage difference between the takeover price offered and the current share price -- is greater than the spread of about 5 percent on a typical deal. A wider spread indicates heightened concern about the leveraged buyout closing. (Reporting by Lisa Lee; Editing by Gary Hill)