Dean Foods Prices Common Share Offering

Dean Foods Company (NYSE: DF - News) today announced the pricing of its previously announced offering of 22,500,000 shares of its common stock at a price to the public of $18.25 per share. The Company has granted the underwriters a 30-day option to purchase up to an additional 3,375,000 shares of its common stock to cover overallotments, if any. The offering is being conducted as a public offering pursuant to an effective registration statement under the Securities Act of 1933. The offering is expected to close on May 11, 2009, subject to customary closing conditions.
The Company expects to receive net proceeds from the offering of approximately $394 million (or approximately $453 million if the underwriters exercise their overallotment option in full), after deducting estimated underwriting discounts and commissions and offering expenses. The Company intends to use the net proceeds of the offering to repay the $122.8 million aggregate principal amount of its subsidiary's 6.625% senior notes due May 15, 2009, and use the remaining net proceeds to repay indebtedness under its receivables-backed facility.
Merrill Lynch & Co., J.P.Morgan, Barclays Capital and Wachovia Securities are joint book-running managers for the offering. Rabo Securities USA, Inc. is the senior co-manager, and BNP PARIBAS, Calyon Securities (USA) Inc., Credit Suisse and SunTrust Robinson Humphrey are the co-managers for the offering