Diplomat Pharmacy sells 7.4 million shares in follow-on offering

FLINT, Mich. — Diplomat Pharmacy announced Monday that it has commenced its follow-on public offering of 7.4 million shares of its common stock. Diplomat is selling 4.4 million shares of common stock and certain selling shareholders of Diplomat are selling 3 million 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 1.1 million 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 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 and Morgan Stanley are acting as lead book-running managers. Additional book-running managers are J.P. Morgan Securities and Wells Fargo Securities. William Blair, Leerink Partners and Raymond James are acting as co-managers.