Diplomat announces launch of public offering of common stock

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Mar 23, 2015, 04:05 ET

FLINT, Mich., March 23, 2015 /PRNewswire/ -- Diplomat Pharmacy, Inc. (NYSE: DPLO), the nation's largest independent specialty pharmacy, announced today that it has commenced its follow-on public offering of 7,400,000 shares of its common stock. Diplomat is selling 4,400,000 shares of common stock and certain selling shareholders of Diplomat are selling 3,000,000 shares of common stock. The company and selling shareholders intend to grant the underwriters a 30-day option to purchase up to an aggregate of an additional 1,110,000 shares of common stock.

Diplomat expects to raise approximately $88 million of gross primary proceeds that will be used for debt repayment (under the amended line of credit following the anticipated near-term closing of the BioRx, LLC acquisition), working capital and other general corporate purposes, which may include additional debt repayment or future acquisitions. The selling shareholders and certain option holders (whose options will be repurchased by the company with additional primary proceeds) will receive the remaining $118 million of gross proceeds expected to be raised in the offering. Diplomat will not receive any proceeds from shares of common stock to be sold by the selling shareholders.

Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are acting as lead book-running managers. Additional book-running managers are J.P. Morgan Securities LLC and Wells Fargo Securities, LLC. William Blair & Company, L.L.C., Leerink Partners LLC and Raymond James & Associates, Inc. are acting as co-managers.

The offering will be made only by means of a prospectus. Copies of the preliminary prospectus relating to the securities being offered may be obtained, when available, from Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, NY 10010, by telephone at (800) 221-1037, by facsimile at (212) 325-8057, or by email at [email protected]; or from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Diplomat
Diplomat (NYSE: DPLO) serves patients and physicians in all 50 states. Headquartered in Flint, Michigan, the company focuses on medication management programs for people with complex chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, HIV, specialized infusion therapy and many other serious or long-term conditions. Diplomat opened its doors in 1975 as a neighborhood pharmacy with one essential tenet: "Take good care of patients, and the rest falls into place." Today, that tradition continues – always focused on improving patient care and clinical adherence. For more information visit www.diplomat.is.

INVESTOR CONTACT:
Bob East, Westwicke Partners
443.213.0500 | [email protected]

MEDIA CONTACT:
Jenny Cretu, Diplomat
810.768.9370 | [email protected]

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SOURCE Diplomat Pharmacy, Inc.