WeightWatchers 2006 Annual Report Download - page 82

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
WW.com and issuances of equity securities of WW.com; and (ii) may be voluntarily prepaid at any time in
whole or in part without premium or penalty, with certain exceptions depending upon the date of payment. The
rights and priorities of the lenders under the WW.com Credit Facilities are governed by an intercreditor
agreement.
The WW.com Credit Facilities contain customary covenants, including affirmative and negative covenants
that, in certain circumstances, restrict WW.com’s ability to incur additional indebtedness, pay dividends on and
redeem capital stock, make other restricted payments, including investments, sell WW.com assets and enter into
consolidations, mergers and transfer of all or substantially all of WW.com’s assets. The WW.com Credit
Facilities also require WW.com to maintain specified financial ratios and satisfy financial condition tests, which
become more restrictive over time. At December 30, 2006 WW.com complied with all of the required financial
ratios and also met all of the financial condition tests and is expected to continue to do so. The WW.com Credit
Facilities contain customary events of default. Upon the occurrence of an event of default under the WW.com
Credit Facilities, the lenders thereunder may cease making loans and declare amounts outstanding to be
immediately due and payable. Each of WW.com’s existing and future domestic subsidiaries have guaranteed the
WW.com Credit Facilities, which facilities are secured by substantially all the assets of WW.com and these
subsidiaries. WWI has not guaranteed the WW.com Credit Facilities.
On November 4, 2005, Standard & Poor’s assigned its “B+” corporate credit rating to WW.com. In addition,
Standard & Poor’s assigned ratings of “B+” to the First Lien Term Credit Facility and “B-” to the Second Lien
Term Credit Facility. On September 22, 2006, Moody’s assigned ratings of “Ba2” to the First Lien Term Credit
Facility and “B2” to the Second Lien Term Credit Facility.
Maturities
At December 30, 2006, the aggregate amounts of existing long-term debt maturing in each of the next five
years and thereafter are as follows:
2007 ...................................... $ 18,922
2008 ...................................... 36,422
2009 ...................................... 53,922
2010 ...................................... 206,518
2011 ...................................... 533,375
2012 and thereafter .......................... —
$849,159
See also Note 19 for further discussion regarding the January 2007 refinancing of the Company’s debt
instruments.
7. Treasury Stock
On October 9, 2003, the Company, at the direction of WWI’s Board of Directors, authorized a program to
repurchase up to $250,000 of the Company’s outstanding common stock. On each of June 13, 2005 and May 25,
2006, the Company, at the direction of WWI’s Board of Directors, authorized adding $250,000 to this program.
The repurchase program allows for shares to be purchased from time to time in the open market or through
privately negotiated transactions. No shares will be purchased from Artal under the program.
In fiscal 2006, 2005 and 2004, the Company purchased 3,627, 3,732 and 4,668 shares of common stock in
the open market at a total cost of $151,678, $175,980 and $177,081, respectively.
F-19