Dean Foods prices public offering at $18.25 per share

by Staff
Share This:

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.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.



The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.