WeightWatchers 2005 Annual Report Download - page 52

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The following schedule sets forth our long-term debt obligations (and interest rates) at
December 31, 2005:
Long-Term Debt
At December 31, 2005
(Balances in millions)
Interest
Balance Rate
WWI Revolver due 2009 ............................ $ 236.0 6.15%
WWI Term Loan B due 2010 ......................... 147.0 6.25%
WWI Additional Term Loan B due 2010 ................. 148.1 5.67%
WW.com First Lien Term Loan ........................ 170.0 6.62%
WW.com Second Lien Term Loan ...................... 45.0 9.12%
Total Debt ................................... 746.1
Less Current Portion ............................. 4.7
Total Long-Term Debt ........................... $ 741.4
The WWI Term Loan B and the WWI Revolver bear interest at an annual rate equal to LIBOR
plus 1.75% or, at Weight Watchers International’s option, the alternate base rate (as defined in the
WWI Credit Facility) plus 0.75%. The WWI Additional Term Loan B bears interest at an annual rate
equal to LIBOR plus 1.50%, or at Weight Watchers International’s option, the alternative base rate (as
defined in the WWI Credit Facility), plus 0.50%. In addition to paying interest on outstanding principal
under the WWI Credit Facility, Weight Watchers International is required to pay a commitment fee to
the lenders under the WWI Revolver with respect to the unused commitments at a rate equal to
0.375% per year. The WWI Term Loan B is subject to scheduled amortization of $375,000 per quarter
until March 31, 2009 and is thereafter subject to amortization of $35.5 million per quarter until
maturity. The WWI Additional Term Loan B is subject to scheduled amortization of $375,000 per
quarter until March 31, 2009 and is thereafter subject to amortization of $35.8 million per quarter until
maturity.
The WWI Credit Facility contains customary covenants including covenants that, in certain
circumstances, restrict our ability to incur additional indebtedness, pay dividends on and redeem capital
stock, make other restricted payments, including investments, sell its assets and enter into
consolidations, mergers and transfers of all or substantially all of its assets. The WWI Credit Facility
also requires Weight Watchers International to maintain specified financial ratios and satisfy financial
condition tests. The WWI Credit Facility contains customary events of default. Upon the occurrence of
an event of default under the WWI Credit Facility, the lenders may cease making loans and declare
amounts outstanding to be immediately due and payable. The WWI Credit Facility is guaranteed by
certain of our existing and future subsidiaries, other than WeightWatchers.com and its subsidiaries.
Substantially all the assets of Weight Watchers International and these subsidiaries collateralize the
WWI Credit Facility.
The WW.com First Lien Term Loan bears interest at a rate equal to LIBOR plus 2.25% per
annum, or, at WeightWatchers.com’s option, the alternate base rate, as defined, plus 1.25% per annum.
The WW.com Second Lien Term Loan bears interest at a rate equal to LIBOR plus 4.75% per annum
or, at WeightWatchers.com’s option, the alternate base rate, as defined, plus 3.75% per annum. Each of
WeightWatchers.com’s existing and future domestic subsidiaries have guaranteed the WW.com Credit
Facilities, which facilities are secured by substantially all the assets of WeightWatchers.com and these
subsidiaries. Weight Watchers International has not guaranteed the WW.com Credit Facilities.
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