Dean Foods prices public offering at $18.25 per share

by Staff
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DALLAS — Dean Foods Co. late Tuesday priced a public offering of 22.5 million of its common shares at $18.25 per share. The company said it expects to raise approximately $394 million in net proceeds from the offering, funds of which will be used to repay $122.8 million senior notes due on May 15. The remaining proceeds will be used to pay off debt under a receivables-backed agreement, Dean said.

The company has given the underwriters a 30-day option to buy up to approximately 3.4 million additional shares to cover any overallotments, which if exercised would bring net proceeds from the offering to $453 million.

The offering is expected to close on May 11.

Shares of Dean Foods closed May 5 at $18.47, opened May 6 at $18.74, and moved to as high as $18.79 in early market trading.

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