Bulletin: Weight Watchers International Inc. Term Loan And Notes Ratings Unchanged By Recapitalization

NEW YORK (S&P Global Ratings) Nov. 20, 2017--S&P Global Ratings said today that its ratings on Weight Watchers International Inc.'s proposed $1,590 million term loan B due in 2024 and $300 million senior unsecured notes due in 2025 remain unchanged at 'B' (with a recovery rating of '3') and 'CCC+' (with a recovery rating of '6'), respectively. The company has decided to upsize its term loan by $200 million from the initially planned issuance of $1,390 million, and downsize the issuance of the notes by the corresponding amount. Weight Watchers plans to use the proceeds from the issuance to refinance its existing $2.1 billion term loan ($1,930 million currently outstanding at Sept. 30, 2017). The offering is leverage neutral, and

...NEW YORK (S&P Global Ratings) Nov. 20, 2017--S&P Global Ratings said today that its ratings on Weight Watchers International Inc.'s proposed $1,590 million term loan B due in 2024 and $300 million senior unsecured notes due in 2025 remain unchanged at 'B' (with a recovery rating of '3') and '###+' (with a recovery rating of '6'), respectively. The company has decided to upsize its term loan by $200 million from the initially planned issuance of $1,390 million, and downsize the issuance of the notes by the corresponding amount. Weight Watchers plans to use the proceeds from the issuance to refinance its existing $2.1 billion term loan ($1,930 million currently outstanding at Sept. 30, 2017). The offering is leverage neutral, and Weight Watchers will have roughly $1.9 billion in reported debt outstanding. We expect the company will end 2017 with leverage around 6x and declining to mid-5x by the end of 2018 as a result of another successful winter recruiting season and continued improving...

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