Diplomat Pharmacy entered into new $800 million senior secured credit facilities to support its acquisition of Leehar Distributors, doing business as LDI Integrated Pharmacy Services.

JPMorgan and Capital One led the debt financing, which consisted of a $250 million revolving credit facility, a $150 million term loan A facility and a $400 million term loan B facility. In addition to the LDI acquisition, the proceeds will be used to 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.”

Diplomat is an independent provider of specialty pharmacy services, helping patients and providers in all 50 states.