Weight Watchers talks resized $300 million minimum notes to yield in 8½% area

By Paul A. Harris

Portland, Ore., Nov. 20 – Weight Watchers International, Inc. resized its offering of eight-year senior notes (B3/CCC+) to $300 million minimum from $500 million, according to a syndicate source.

The notes are talked to yield in the 8½% area.

Along with talk came covenant changes primarily regarding the manner in which cash may be disbursed.

Books close at 2 p.m. ET on Monday, and the deal is set to price thereafter.

Citigroup Global Markets Inc. is the left bookrunner. BofA Merrill Lynch and J.P. Morgan Securities LLC are the joint bookrunners.

KeyBanc Capital Markets LLC and SunTrust Robinson Humphrey Inc. are the co-managers.

The notes feature a make-whole call at Treasuries plus 50 basis points for the first three years, then become callable at par plus 50% of the coupon. They also feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The New York-based provider of weight management services plans to use the proceeds from the Rule 144A and Regulation S for life notes to refinance its term loan B-2.

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