Weight Watchers prices $150 million revolver at Libor plus 275 bps

By Sara Rosenberg

New York, Nov. 22 – Weight Watchers International Inc. wrapped syndication of its $150 million revolving credit facility due 2022 at pricing of Libor plus 275 basis points, according to a news release.

Along with the revolver, the company is getting a $1.54 billion seven-year term loan B priced at Libor plus 475 bps with a 0.75% Libor floor and sold at an original issue discount of 98.

The term loan has 101 soft call protection for one year.

As previously reported, during syndication the term loan was upsized from $1.39 billion, the spread firmed at the wide end of revised talk of Libor plus 450 bps to 475 bps and up from initial talk in the range of Libor plus 375 bps to 400 bps, the discount widened from 99.5 and the call protection was extended from six months.

In addition, during syndication, amortization on the term loan was increased to 5% per annum from 1%, the MFN sunset was removed so that there is 50 bps MFN for life, the opening excess cash flow sweep was lifted to 75% from 50%, and changes were made to the incremental allowance and various baskets.

J.P. Morgan Securities LLC is the lead bank on the deal.

The company is also getting $300 million of 8 5/8% senior notes, downsized from $500 million with the recent term loan upsizing.

Proceeds from the term loan, notes, around $25 million of revolver borrowings and about $120 million of cash on hand will be used to repay an existing term loan maturing April 2020.

Closing on the refinancing is expected to occur on Nov. 29.

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

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