Dean Foods Prices WhiteWave Foods Spin-Off
Deans Foods has set a public offering price of $17.75 per share for approximately 29.9 million shares of WhiteWave Foods, a wholly owned subsidiary of Deans Foods, according to a recent press release. The intention to spin-off WhiteWave was first announced May 1, 2013.
In addition to the 29.9 million shares of WhiteWave offered, the deal's underwriters have the option to purchase an estimated 4.5 million more shares at the $17.75 price. Should the underwriters of the deal, JPMorgan Securities and Bank of America Merrill Lynch, decide to exercise their option for the additional shares, Dean Foods will have fully divested itself of WhiteWave Foods.
In lieu of a cash payment, Dean Foods will swap its shares of WhiteWave to BofA and JPMorgan to offset existing indebtedness with the investment banks. As a result, Dean Foods expects "the debt-for-equity exchange to be a tax-free transaction."
The offering is expected to close July 25, 2013, according to the release.
The article Dean Foods Prices WhiteWave Foods Spin-Off originally appeared on Fool.com.Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America, Dean Foods Company, and JPMorgan Chase & Co.. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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