Weight Watchers to get new bank debt with amendment and extension

By Sara Rosenberg

New York, Feb. 14 - Weight Watchers International Inc. plans on using new borrowings under a proposed amended and extended credit facility to fund the repurchase of its common stock, according to a news release.

J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are the joint lead arrangers and bookrunners on the deal.

For the stock buyback, the company is planning on launching a modified Dutch auction tender offer for up to $720 million of its common stock at a price of $72 to $83 per share.

The tender offer is expected to commence next week and will remain open for at least 20 business days.

Also, the company will purchase shares from Artal, which owns about 52% of the company's outstanding shares, at the same price as the one determined in the tender offer. Following the repurchase, Artal's percentage ownership interest in Weight Watchers' will be substantially equal to its current level.

If the tender offer is fully subscribed, the company will repurchase a total of about $1.5 billion of its common stock through the tender offer and the Artal purchase agreement.

The new credit facility is expected to be in place at least five business days prior to the closing of the tender offer.

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

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