Moody's rates Weight Watchers facility Ba1

Moody's Investors Service said it has assigned a Ba1 rating to Weight Watchers International Inc.'s proposed $500 million senior secured credit facility, comprised of a $250 million senior secured revolving credit facility and a $250 million senior secured term loan B.

The outlook is stable.

Moody's said the ratings reflect the company's significant cash flows, strong market position, and impressive credit statistics. The ratings also consider a lack of product diversification, high levels of intangible assets, and the long-term threat from medical advances.

Proceeds from the proposed offering will be used to refinance the existing senior debt and for fees and expenses. The new $250 million senior secured revolver will also be used for general corporate and working capital needs of the company. The primary purpose of the refinancing is to take advantage of the low interest rate environment.

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