Weight Watchers to prepay $63.1 million initial tranche B-1 term loans

By Toni Weeks

San Luis Obispo, Calif., March 23 – Weight Watchers International, Inc. will prepay at a discount on March 25 about $63.1 million principal amount of its outstanding initial tranche B-1 term loans, according to an 8-K filing with the Securities and Exchange Commission.

The company announced on March 13 that it intended to prepay at a discount up to $75 million of the term loans.

On March 20, Weight Watchers accepted offers with a discount of at least 9%. It will expend cash proceeds totaling roughly $57.4 million plus an amount sufficient to pay accrued interest to prepay about $63.1 million principal amount of term loans.

As already noted, the prepayment will reduce, on a dollar-for-dollar basis, the company’s $60 million obligation to make a mandatory excess cash flow prepayment offer under the terms of the credit agreement.

JPMorgan Chase Bank, NA is the administrative agent and an issuing bank, and Bank of Nova Scotia is a revolving agent, swingline lender and an issuing bank.

The company also announced in the March 13 SEC filing that as a result of its calculation of excess cash flow, it will revise the current and long-term liabilities of the company for inclusion in future documents, including the company’s first quarterly report on Form 10-Q to be filed with the SEC. It also noted that the prepayment of loans under the credit agreement was not included in the company’s previously announced $350 million year-end cash balance target for fiscal 2015.

Weight Watchers is a New York-based provider of weight management services.

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