Weightwatchers and lender advisors enter confidential consultations for restructuring

WW International and its lender advisors reportedly took a step forward to talking about the potential to restructure the company’s debts.

Wall Street Journal Citing an unknown source, the WeightWatchers, who became WW International several years ago, reported that the lender advisor recently entered into a non-disclosure agreement.

The company’s financial forecast and strategy was at the heart of the initial restructuring consultation with the lender advisor Weight Watcheraccording to the outlet.

Advisors are reportedly working to analyze courses of actions available to lenders with information.

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Fox Business contacted the company to comment on the journal’s report.

The weightwatcher’s total debt is $16.9 billion, including $1.4 billion in net long-term debt, according to the latest quarterly report.

In early November, then-CFO Heather Stark told analysts and investors that the company “sufficient liquidity for working capital needs” and “unmaturity appeal of term loans or senior notes until 2028 and 2022. “The terms of debt are as follows.”

“However, at the end of the third quarter, we acknowledge that debt burden is important in net debt to adjust the EBITDA sliver ratio to 10.4 times,” she said. “So we recently appointed an advisor to help assess options related to the entire capital structure.”

The company recently received a filing from the Securities and Exchange Commission, which had borrowed approximately $113.3 million under the “secured revolving credit line” that it had since 2021 to “provide financial flexibility.” It has been disclosed.

WeightWatchers CEO Sima Sistani suddenly left and accepted weight loss pills

“We will continue to actively assess the capital structure and explore transactions to strengthen our balance sheets and increase financial flexibility,” WeightWatchers said in the submission. “We look forward to interacting with lenders and bondholders in the coming months.”

He said the purpose of borrowing these funds was to “not address short-term liquidity requirements.”

The company has been around since 1963. It has long provided weight loss and weight management programs. Recently, we have delved into access to weight loss medication amid the surge in popularity among people using it. Those drugs Be slim.

WeightWatchers generated $601.5 million Net revenue Over the first three quarters of 2024, it includes $109.9 million for the third quarter. A net loss of $370.8 million was seen over the same nine months.

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“Third quarter results were on a wide and promising basis, but it is clear that there is important work to change the business trajectory,” interim CEO Taracomonte said in November. I mentioned it in the revenue call. “This is an industry undergoing a massive transition, and as a result, weight watchers have experienced meaningful disruptions in recent years. However, I am optimistic about my ability to build a path to future growth. .”