WW International ups revolver to $175 million, relaxes covenant

By Sarah Lizee

Olympia, Wash., June 15 – WW International, Inc. amended its credit agreement on Sunday with JPMorgan Chase Bank, NA as the administrative agent, increasing its revolver by $25 million to $175 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also relaxed the requirements of the financial maintenance covenant under the credit agreement until the end of the second fiscal quarter of 2022.

The first-lien secured net leverage ratio required by the financial maintenance covenant was increased to 4.50:1.00 from 3.75:1.00, starting with the second fiscal quarter of 2020 through the end of fiscal 2020, with a further step up to 5.00:1.00 for fiscal 2021, before stepping down to 4.50:1.00 for the first fiscal quarter of 2022, and again to 3.75:1.00, starting with the second fiscal quarter of 2022.

The increases in the required first-lien secured net leverage ratio are subject to the company’s compliance with some conditions, which include meeting a 3.75:1.00 first-lien secured net leverage ratio with respect to some types of investments, restricted payments and prepayments of junior debt during the financial maintenance covenant relief period.

The amendment also increased the applicable margin for loans and the commitment fee when the first-lien secured net leverage ratio is greater than or equal to 3.75:1.00 to 3% and 0.625%, respectively.

WW International, formerly Weight Watchers International, Inc., a New York-based provider of weight management services.

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