Diamond Foods Announces Common Stock Offering

SAN FRANCISCO — Diamond Foods, Inc. (NASDAQ: DMND), today announced that it has commenced an offering of 4,500,000 shares of common stock. The Company will grant the underwriters an option to purchase up to 675,000 additional shares, on the same terms and conditions, to cover overallotments, if any. The Company is conducting the offering pursuant to an effective registration statement under the Securities Act of 1933.

The Company intends to use the net proceeds of the offering to pay a portion of the purchase price for the acquisition of Kettle Foods from Lion Capital LLP. If the Company does not consummate the acquisition of Kettle Foods, it intends to use the net proceeds for general corporate purposes, including repayment of indebtedness.

Barclays Capital, BofA Merrill Lynch and BMO Capital Markets are joint book running managers for the offering.

The offering is being made solely by means of a prospectus supplement and the accompanying prospectus. The press release shall not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Source: Diamond Foods Inc.