Business
WW International Announces Refinancing Of Debt Maturities
NEW YORK, April 02, 2021 (GLOBE NEWSWIRE) -- WW International, Inc. (NASDAQ: WW) (the “Company”) announced today that it has completed the pricing and
About this update from Ww International, Inc.
[{"type":"text","content":"NEW YORK, April 02, 2021 (GLOBE NEWSWIRE) -- WW International, Inc. (NASDAQ: WW) (the “Company”) announced today that it has completed the pricing and allocation of the previously announced $1.5 billion refinancing of its existing credit facilities and senior notes. The refinancing is expected to close on April 13, 2021, subject to customary closing conditions. Amy O’Keefe, the Company's CFO, commented, “We are pleased with this strong demonstration of support from the finance community, which recognizes the strength of WW’s business model and financial performance. This refinancing further strengthens our balance sheet and enhances our ability to drive tech-enabled innovation and Digital subscriber growth, fueling value creation for lenders and shareholders.” The leverage neutral refinancing will include the following: the new term loan facility due 2028 in an aggregate principal amount of $1,000 million (issued at 99.5% of par) with an interest rate of LIBOR + 3.50%, with a LIBOR floor of 0.5%, which will replace the Company’s existing term loan facility due in 2024;the new $175 million revolving credit facility expiring in 2026, which will replace the Company’s existing $175 million revolving credit facility expiring in 2022;the new 4.500% senior secured notes due 2029 in aggregate principal amount of $500 million; andthe redemption of all of the Company’s $300 million aggregate principal amount of its outstanding 8.625% senior notes due 2025. The Company intends to use the net proceeds of the offering of the new senior secured notes, together with $1,000 million of expected new term loan facility borrowings from the new $1,175 million senior secured credit facilities and cash on hand, to repay all amounts outstanding under its existing credit facilities and terminate such facilities, to redeem all of the $300 million aggregate principal amount of its outstanding 8.625% senior notes due 2025, to pay related fees and expenses, and for general corporate purposes. Under the new term loan facility and new senior secured notes, the Company anticipates a reduction of approximately $20 million to its total interest expense expectation of $111 million in fiscal 2021. On an annualized basis, the refinancing is estimated to reduce the Company’s interest expense by approximately $29 million based on current debt levels. In the second qu...