Houlihan Lokey Advises Polaris Pharmacy Services

Houlihan Lokey is pleased to announce the successful placement of a $292 million senior secured credit facility comprising an $85 million ABL revolver and a $207 million term loan for Polaris Pharmacy Services, LLC (Polaris), a portfolio company of Vector Holdings and TriEdge Investments. The transaction closed on November 21, 2023.

Polaris is a leading, institutional integrated pharmacy serving at-home specialty patients as well as long-term care facilities, such as senior living, post-acute, and correctional facilities, across the U.S. The company has successfully grown organically, and most recently, through the acquisitions of Contract Pharmacy Services and Premier Pharmacy Services in April 2023, which expanded Polaris’ geographic reach, provided entry into the specialty pharmacy space, and significantly increased its scale. Given the increased scale of the business, impending maturities of its existing indebtedness, and a new acquisition the company had under LOI, there was a need to pursue comprehensive financing with institutional lenders who could grow with the company and provide a long-term, permanent capital structure.

Having a foundation dating back more than 10 years, Vector Holdings and TriEdge Investments collectively manage ~$3.1 billion in assets. Originally focused on healthcare services, the two companies have expanded their joint portfolio to encompass companies specializing in a wide range of products and services, as well as other strategic real estate and business investment opportunities.

Houlihan Lokey served as the exclusive placement agent to Polaris, assisting the company in arranging, structuring, and negotiating the financing. Through thoughtful positioning and execution, Houlihan Lokey was able to create competitive tension and achieve comprehensive financing, providing the company with the ability to refinance its existing indebtedness, fund acquisitions under LOI, and obtain incremental liquidity and capacity to grow the business.

Houlihan Lokey is one of the largest providers of private capital solutions in the world, raising approximately $26 billion in capital and advising on an additional ~$9 billion across more than 250 transactions over the past two fiscal years.