Scotia Capital and Credit Suisse First Boston last week launched syndication of a $500 million credit facility for Weight Watchers International . The debt comprises a five-year, $250 million revolver and a six-year, $250 million "B" loan. Pricing on the revolver and term loan is LIBOR plus 1 3Ž 4% and LIBOR plus 2%, respectively.
One buysider said he plans on investing because the company has a very stable historical cash flow. The facility will refinance the company's existing $380 million term loan and the revolver and will provide the company with additional operational flexibility in the future, a banker said. There was a good showing at the bank meeting and the offer was not proposed to any new lenders on the institutional side, he added.
European private investment firm Artal Luxembourg bought Weight Watchers from H. J. Heinz Co. in 1999. The company went public in November 2001 and then refinanced its "B" loan, which was originally priced at LIBOR plus 4% (LMW, 12/6/01).