Diplomat Pharmacy, Inc. has completed its acquisition of Leehar Distributors, LLC, doing business as LDI Integrated Pharmacy Services, from Nautic Partners, LLC; Oak HC/FT Partners, L.P.; and LDI management. Diplomat has also entered into new $800 million senior secured credit facilities.

LDI Integrated Pharmacy Services is a full-service pharmacy benefit manager (PBM). It includes URAC–accredited mail-order and specialty pharmacies, a national network of retail pharmacies, and comprehensive clinical programs. LDI is based in St. Louis, Missouri. Under the terms of the agreement, Diplomat purchased LDI for $515 million in cash and approximately $80 million in Diplomat common stock. The cash portion of the acquisition was funded by Diplomat's new $800 million senior secured credit facilities, the proceeds of which were also used to terminate Diplomat's outstanding indebtedness.

In conjunction with the acquisition closing, Diplomat fully syndicated an $800 million debt financing led by JPMorgan Chase Bank, N.A. and Capital One, National Association. The $800 million financing is comprised of a $250 million Revolving Credit Facility, a $150 million Term Loan A Facility, and a $400 million Term Loan B Facility. The proceeds of the debt financing will be used to finance the LDI acquisition, pay related transaction fees and expenses, refinance Diplomat's current indebtedness, and provide sufficient liquidity for the company's future needs.

"With the strong reception from our lenders in combination with our newly assigned B1/B+ credit ratings, we are pleased to have closed our new senior credit facilities on terms favorable to what we initially expected," said Atul Kavthekar, CFO of Diplomat. "We now look forward to demonstrating Diplomat's commitment to return to our target leverage of 2x to 3x trailing EBITDA by mid-2019."