WeightWatchers 2006 Annual Report Download - page 80

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
6. Long-Term Debt
The Company’s components of long-term debt are as follows:
December 30,
2006
December 31,
2005
Balance
Effective
rate Balance
Effective
rate
Revolver due 2011 ............................ $313,375 6.43% $236,000 5.22%
Term Loan A due 2011 ......................... 350,000 6.23% — —
Term Loan B due 2010 ......................... — 147,000 5.04%
Additional Term Loan B due 2010 ................ — 148,125 4.81%
Senior Secured First Lien Term Loan .............. 140,784 7.32% 170,000 6.62%
Senior Secured Second Lien Term Loan ........... 45,000 9.87% 45,000 9.12%
849,159 746,125
Less current portion ............................ 18,922 4,700
$830,237 $741,425
WWI Credit Facility
WWI’s Credit Agreement dated as of January 16, 2001 and as amended and restated as of January 21, 2004,
as supplemented on October 19, 2004 and as amended on June 24, 2005 and May 8, 2006 (the “WWI Credit
Facility”) consists of a Term Loan and a revolving line of credit.
On January 21, 2004, WWI refinanced its Credit Facility as follows: the Term Loan A, Term Loan B, and
the transferable loan certificate (the “TLC”) in the aggregate amount of $454,180 were repaid and replaced with
a new Term Loan B in the amount of $150,000 and borrowings under the revolving line of credit of $310,000. In
connection with this refinancing, available borrowings under the revolving line of credit increased from $45,000
to $350,000.
Due to the early extinguishment of the Term Loans resulting from the January 21, 2004 refinancing, the
Company recognized expenses of $3,254 for the three months ended April 3, 2004, which included the write-off
of unamortized debt issuance costs of $2,933 and $321 of fees associated with the transaction.
On October 1, 2004, the Company repurchased and retired the remaining balance of its 13% Senior
Subordinated Notes in the amounts of $5,100 USD denominated and €8,400 euro-denominated. Due to this early
extinguishment of debt, the Company recognized expenses of $1,010 in the quarter ended October 2, 2004
related to redemption premiums associated with this redemption.
On October 19, 2004, WWI supplemented its net borrowing capacity by adding an Additional Term Loan B
to its existing Credit Facility in the amount of $150,000. Coterminous with the previously existing Credit
Facility, these funds were initially used to reduce borrowings under WWI’s revolving line of credit, resulting in
no increase in WWI’s net borrowing.
On June 24, 2005, WWI amended certain provisions of its Credit Facility to allow for the December 16,
2005 Redemption, as described in Note 3.
On May 8, 2006, WWI entered into a refinancing to reduce its effective interest rate while increasing its
borrowing capacity and extending the maturities of borrowings under the WWI Credit Facility. In connection
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