NEW YORK, Nov. 21, 2017 /PRNewswire/ -- Weight
Watchers International, Inc. (NYSE: WTW) announced today that it
has completed the placement and structuring of the previously
announced $1.9 billion refinancing of
its existing term loan due in April 2020. The refinancing is expected to close
on November 29, 2017.
Nick Hotchkin, the Company's CFO
commented, "We are pleased with this strong demonstration of
support from the finance community, which recognizes our continued
business momentum and our global growth potential. We are committed
to our previously stated long-term net leverage target of
below 3.5x net debt to EBITDAS, reflecting our confidence in the
sustainability of our growth and our cash generative business
model."
The leverage neutral refinancing will include the following:
- a new term loan facility due 2024 in an aggregate principal
amount of $1,540 million with an
interest rate of LIBOR + 475 bps;
- 8.625% senior notes due 2025 in aggregate principal amount of
$300 million; and
- a new $150 million revolving
credit facility expiring in 2022 with an interest rate of LIBOR +
275 bps.
The Company intends to use the net proceeds from its new term
loan and new senior notes, as well as $25
million of expected borrowings under its new revolving
credit facility and an estimated $120
million of cash on hand, to pay off its outstanding
borrowings under its existing term loan, as well as associated fees
and expenses.
Under the new capital structure, total interest expense in
2018 is estimated to be approximately $140
million. In the fourth quarter of 2017, the Company will
record a one-time charge associated with the partial write-off of
refinancing fees.
The senior notes and related guarantees were offered in a
private placement, solely to persons reasonably believed to be
qualified institutional buyers in reliance on Rule 144A under the
Securities Act or outside the United
States to non-U.S. persons in compliance with Regulation S
under the Securities Act. The senior notes and related guarantees
have not been registered under the Securities Act or the securities
laws of any other jurisdiction and may not be offered or sold in
the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities
or blue sky laws and foreign security laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any senior notes, nor shall there
be any sales of the senior notes in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction.
About Weight Watchers International, Inc.
Weight
Watchers International, Inc. is one of the most recognized and
trusted brand names among weight-conscious consumers. Weight
Watchers provides commercial weight management services through a
global network of Company-owned and franchise operations and offers
innovative, digital weight management products through its
websites, mobile sites and apps. These services and products are
built on the Company's weight management program, which helps
millions of people around the world lose weight through sensible
and sustainable food plans, activity, behavior modification and
group support. Weight Watchers has an unparalleled network of
service providers to assist members on their journey and also
offers a wide range of products, publications and programs for
those interested in weight loss and healthier living.
This press release includes "forward-looking statements,"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including, in particular, statements about the Company's
plans, strategies and prospects. The Company generally uses the
words "may," "will," "could," "expect," "anticipate," "believe,"
"estimate," "plan," "intend" and similar expressions in this press
release to identify forward-looking statements. The Company bases
these forward-looking statements on its current views with respect
to future events and financial performance. Actual results could
differ materially from those projected in the forward-looking
statements. These forward-looking statements are subject to risks,
uncertainties and assumptions, including, among other things: the
Company's ability to consummate the refinancing, changes in general
economic and market conditions and other risks and uncertainties,
including those detailed from time to time in the Company's
periodic reports filed with the Securities and Exchange Commission.
You should not put undue reliance on any forward-looking
statements. You should understand that many important factors,
including those discussed herein, could cause actual events and
results to differ materially from those expressed or suggested in
any forward-looking statement. Except as required by law, the
Company does not undertake any obligation to update or revise these
forward-looking statements to reflect new information or events or
circumstances that occur after the date of this press release or to
reflect the occurrence of unanticipated events or
otherwise.
Contact Information:
Investors:
Corey Kinger
212-601-7569
corey.kinger@weightwatchers.com
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SOURCE Weight Watchers International, Inc.