Dean Foods calls remaining 5½% convertibles

New York, May 22 - Dean Foods Co. said it is calling the remaining 5½% Trust Issued Preferred Equity Securities (Tipes) issued by Dean Capital Trust.

The redemption will be on June 23 at a price of $51.0315 per security.

Holders can convert the Tipes into common stock up until 4.00 p.m. ET on June 20. Conversions after May 23, the record date for Dean's three-for-two stock split will be into 1.917 shares of Dean common stock. Dean Foods stock closed at $44.48 on Thursday ($29.65 pro forma for the split).

The Dallas food and beverage company said it will use cash flow from operations and borrowings under its senior credit facility to fund the redemption.

Dean also said the holders of 99.6% of the second tranche of Tipes called for redemption converted the securities to stock rather than receive cash. The company announced that call, covering $200 million of the Tipes, on April 22 and said it would leave $300 million outstanding.

On March 17 it said it announced the redemption of $100 million of the Tipes.

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