Deans Foods (NYSE:DF) 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.