Weight Watchers talks $500 million eight-year notes at 4½% area; pricing Thursday

By Paul A. Harris

Portland, Ore., April 1 – WW International, Inc. talked its $500 million offering of eight-year senior secured notes (Ba3/BB-) to yield in the 4½% area, according to market sources.

Official talk comes tight to initial guidance in the mid-to-high 4% area.

Books close at noon ET on Thursday, in line with the commitment deadline for the concurrent $1 billion term loan, and the Rule 144A and Regulation S for life notes are set to price thereafter.

Both the notes and the loan are significantly oversubscribed, sources say.

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 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 the 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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