WeightWatchers 2007 Annual Report Download - page 54

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financing activities. Investing activities utilized $400.3 million of cash, including $380.8 million for the
acquisition of the remaining interests in WeightWatchers.com and $19.4 million for capital spending. Net cash
provided for financing activities totaled $103.2 million, comprised of net borrowings of $277.0 million and the
use of $176.0 million for the repurchase of 3.7 million shares of our common stock pursuant to our stock
repurchase plan.
Long-Term Debt
As of December 29, 2007, our credit facility consisted of Term Loan A, Additional Term Loan A, Term
Loan B, and a revolving credit facility, or the Revolver, collectively, the WWI Credit Facility.At December 29,
2007, we had debt of $1,648.1 million and had additional availability under our $500.0 million Revolver of
$383.4 million.
On June 24, 2005, Weight Watchers International amended certain provisions of WWI’s then-existing credit
facility to allow for the December 16, 2005 redemption by WeightWatchers.com of its shares owned by Artal.
On December 16, 2005, WeightWatchers.com borrowed $215.0 million pursuant to two credit facilities,
consisting of (i) a five year, senior secured first lien term loan in an aggregate principal amount of $170.0 million
and (ii) a five and one-half year, senior secured second lien term loan facility in an aggregate principal amount of
$45.0 million.
In May 2006, we entered into a refinancing to reduce our effective interest rate while increasing our
borrowing capacity and extending the maturities of borrowings under WWI’s then-existing credit facility. In
connection with the refinancing, we increased our term loans from $293.4 million to $350.0 million. The
additional funds of $55.6 million were used to pay down the revolving line of credit. Also, in connection with
this refinancing, WWI’s then-existing line of credit was repaid and replaced with a new revolving line of credit
which increased borrowing capacity from $350.0 million to $500.0 million. In connection with this refinancing,
we incurred expenses of $1.3 million.
In January 2007, in connection with the Tender Offer (as discussed in Item 5 herein), we increased our debt
capacity by adding an Additional Term Loan A in the amount of $700 million and a new Term Loan B in the
amount of $500 million. We utilized $185.8 million of these proceeds to pay off the WW.com Credit Facilities.
In connection with this refinancing, we incurred expenses of $3.0 million. The Additional Term Loan A and the
Term Loan B mature in January 2013 and January 2014, respectively.
At December 29, 2007, December 30, 2006 and December 31, 2005, our debt consisted entirely of variable-
rate instruments. The average interest rate on our debt was approximately 6.5%, 6.8% and 6.1%, per annum at
December 29, 2007, December 30, 2006 and December 31, 2005, respectively.
The following schedule sets forth our long-term debt obligations (and interest rates) at December 29, 2007:
Long-Term Debt
At December 29, 2007
(Balances in millions)
Balance
Interest
Rate
Revolver due 2011 ................................................. $ 115.0 6.34%
Term Loan A due 2011 .............................................. 336.9 6.39%
Additional Term Loan A due 2013 ..................................... 700.0 6.50%
Term Loan B due 2014 .............................................. 496.2 6.75%
Total Debt ................................................ 1,648.1
Less Current Portion ............................................ 45.6
Total Long-Term Debt ...................................... $1,602.5
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