Diplomat Pharmacy sets Wednesday launch for $545 million term loan

By Sara Rosenberg

New York, Nov. 27 – Diplomat Pharmacy Inc. scheduled a bank meeting for Wednesday in New York to launch its $545 million seven-year covenant-light term loan, according to a market source.

JPMorgan Chase Bank and Capital One are the joint lead arrangers and bookrunners on the deal.

Price talk on the term loan is Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99, the source said.

The term loan has 101 soft call protection for six months.

Based on the commitment letter, the company is also expected to get a $250 million five-year revolver as part of its $795 million of senior secured credit facilities (B+).

Proceeds will be used to fund the acquisition of Leehar Distributors LLC and refinance existing bank debt.

Under the agreement, Leehar, doing business as LDI Integrated Pharmacy Services, will be purchased for $515 million cash and about $80 million in Diplomat common stock.

Diplomat is a Flint, Mich.-based provider of specialty pharmacy services. Leehar is a St. Louis-based full-service pharmacy benefit manager.

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