Weight Watchers to price $500 million eight-year notes on Thursday; whisper mid-to-high 4% area

By Paul A. Harris

Portland, Ore., March 31 – WW International, Inc. plans to price a $500 million offering of eight-year senior secured notes (Ba3/BB-) on Thursday, according to market sources.

The deal, which was scheduled to kick off on a Wednesday morning conference call with investors, is in the market with initial guidance in the mid-to-high 4% area, a trader said.

Goldman Sachs & Co. LLC is the left bookrunner. BofA Securities Inc., J.P. Morgan Securities LLC, Truist Securities Inc. and KeyBanc Capital Markets Inc. are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

Proceeds plus a new term loan and cash on hand will be used to pay off the existing credit facilities, to redeem all $300 million of the outstanding 8 5/8% senior notes and for general corporate purposes.

The New York-based company, formerly Weight Watchers International, Inc., provides weight-loss and fitness services.

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