DALLAS, Mar 17, 2003 /PRNewswire-FirstCall via COMTEX/ — Dean Foods Company
(NYSE: DF) announced today that its wholly-owned subsidiary, Dean Capital Trust,
will partially redeem its 5 1/2% Trust Issued Preferred Equity Securities
(TIPES). TIPES with an aggregate liquidation amount of $100 million will be
redeemed on April 17, 2003 at a redemption price of $51.0315 per security. The
TIPES to be redeemed will be selected by lot pursuant to the terms of the
Holders of TIPES that are selected for redemption will have until 4:00 P.M. EST
on April 16, 2003 to convert their preferred securities into shares of Dean
Foods common stock instead of receiving the $51.0315 redemption price. TIPES
submitted for conversion will be exchanged for 1.278 shares of Dean Foods common
stock for each TIPES security. Fractional shares will be paid in cash.
The company will fund cash redemptions using cash flow from operations and
borrowings under the company’s senior credit facility. Any shares of common
stock that Dean Foods Company may issue as a result of conversions of TIPES are
already reflected in the company’s reported diluted share calculation for
purposes of determining diluted earnings per share, as required by generally
accepted accounting principles.
Approximately $500 million of TIPES will remain outstanding following the
completion of this partial redemption.
Dean Foods Company is one of the nation’s leading food and beverage companies.
The company produces a full line of company-branded and private label dairy and
dairy-related products such as milk and milk-based beverages, ice cream, coffee
creamers, half and half, whipping cream, whipped toppings, sour cream, cottage
cheese, yogurt, dips, dressings and soy milk. The company is also a leading
supplier of pickles and other specialty food products, juice, juice drinks and
water. The company operates over 120 plants in 38 U.S. states and Spain, and
employs approximately 28,000 people.
Contact: Cory Olson
Senior Vice President and Treasurer
SOURCE Dean Foods Company
CONTACT: Cory Olson, Senior Vice President and Treasurer of Dean Foods