Weight Watchers to prepay $75 million initial tranche B-1 term loans

By Toni Weeks

San Luis Obispo, Calif., March 12 – Weight Watchers International, Inc. intends to prepay at a discount on March 13 $75 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 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 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.

The company also said in the filing 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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