Dean Foods to pay one-time $15 dividend |
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Fri, 02 Mar 2007 14:59
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DALLAS (AP) - Dean Foods Co., one of the nation's biggest food processors and distributors, said Friday it will make a one-time cash payment to shareholders of about $2 billion in a move to shift the company's balance sheet to debt capital from equity capital.Dean Foods, whose brands include Horizon Organic dairy products and Delight coffee creamers, plans to pay the special dividend of $15 on April 2 to shareholders of record as of March 27.The company expects to finance the payout by taking on $4.8 billion in new debt through the sale of senior secured credit.'Given our internal focus, our strong cash flows, and the incredible liquidity and flexibility of today's debt capital markets, the appropriate finance decision for Dean Foods today is to increase our exposure to the debt markets and return equity capital to shareholders,' the company said in a statement.JPMorgan Securities is underwriting the debt sale, which will include $1.5 billion in a five-year revolving credit facility and two term loans of $1.5 billion and $1.8 billion.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Dean Foods names president of Horizon 