Weight Watchers to launch $1.2 billion in term debt on Jan. 5

By Sara Rosenberg

New York, Dec. 18 - Weight Watchers International Inc. is scheduled to hold a bank meeting on Jan. 5 to launch its proposed $1.2 billion in new term loan debt, according to a market source.

Credit Suisse is the lead bank on the deal.

The debt consists of a $700 million term loan A add-on talked at Libor plus 125 basis points and a $500 million new term loan B tranche talked at Libor plus 150 bps, the source said.

In addition, the company's existing term loan A debt and revolving credit facility will have their pricing grids revised to reflect the increase in debt, resulting in the two tranches being repriced at Libor plus 125 bps from Libor plus 100 bps, the source explained.

Proceeds from the incremental term loan debt will be used to refinance the debt of the company's subsidiary, WeightWatchers.com., and to fund a modified Dutch auction self-tender offer for up to 8.3 million shares of its common stock at a price per share not less than $47.00 and not greater than $54.00.

The tender offer is expected to expire on Jan. 18.

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

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