WeightWatchers 2008 Annual Report Download - page 57

activities utilized $171.4 million, including $140.4 million for our fiscal 2006 franchise acquisitions and $31.0
million for capital spending. Net cash used for financing activities totaled $90.9 million, including $151.7 million
used to repurchase 3.6 million shares of our common stock pursuant to our stock repurchase plan and $51.8
million used to pay dividends, offset by net proceeds from borrowings of $103.0 million.
Long-Term Debt
As of January 3, 2009, our credit facility consisted of Term Loan A, Additional Term Loan A, Term Loan
B, and the Revolver, collectively, the WWI Credit Facility.At January 3, 2009, we had debt of $1,647.5 million
and had additional availability under our $500.0 million Revolver of $337.9 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 (discussed in further detail in “Item 1. Business—
History—Tender Offer and Share Repurchase”), we increased our debt capacity by adding an Additional Term
Loan A in the amount of $700.0 million and a new Term Loan B in the amount of $500.0 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 January 3, 2009, December 29, 2007 and December 30, 2006, our debt consisted entirely of variable-rate
instruments. The average interest rate on our debt was approximately 4.7%, 6.5% and 6.8% per annum at
January 3, 2009, December 29, 2007 and December 30, 2006, respectively.
The following schedule sets forth our long-term debt obligations (and interest rates) at January 3, 2009:
Long-Term Debt
At January 3, 2009
(Balances in millions)
Balance
Interest
Rate
Revolver due 2011 ................................................. $ 160.0 2.85%
Term Loan A due 2011 .............................................. 297.5 2.94%
Additional Term Loan A due 2013 ..................................... 700.0 5.19%
Term Loan B due 2014 .............................................. 490.0 5.69%
Total Debt ................................................ 1,647.5
Less Current Portion ............................................ 162.5
Total Long-Term Debt ...................................... $1,485.0
The Term Loan A, Additional Term Loan A and the Revolver bear interest at an initial rate equal to LIBOR
plus 1.25% per annum or, at our option, the alternate base rate (as defined in the WWI Credit Facility
agreements). During the first quarter of fiscal 2008, the interest rate on the Term Loan A, Additional Term Loan
A and the Revolver was reduced to LIBOR plus 1.0% per annum or, at our option, the alternate base rate (as
defined in the WWI Credit Facility agreements) in accordance with the terms of the WWI Credit Facility
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