Financial Restructuring Plan Overview - The company is undertaking a strategic action to eliminate $1.15 billion of debt and strengthen its financial position[4] - The reorganization plan aims to reduce existing debt of $1.6 billion to a pro forma debt of $465 million, representing an approximate 70% reduction[6] - Debt maturities are extended from 2028/2029 to 2030[8] - The company intends to remain a publicly traded company upon emergence from the reorganization process[12] Financial Impact - Annual interest expense is projected to decrease by approximately $50 million, representing a ~50% reduction[9, 10] - The company's net leverage is expected to decrease from 9.4x to less than 3x[9, 10] - The transaction provides for the retention of $171 million of cash previously drawn from its revolving credit facility[11] - Cash increased from $183 million to $236 million[9] Transaction Details - The company will issue $465 million in new senior secured debt due 2030[12] - The interest rate on the new debt will be SOFR + 680 basis points for the new term loan or 1025% for the new note[13] - Existing lenders and noteholders will receive 91% of the new common equity of the reorganized company, subject to dilution[13]

Core Viewpoint - WW International, Inc. is undergoing a financial reorganization to eliminate $1.15 billion in debt, enhance its digital and member experience, and expand its telehealth business, which saw a 57% year-over-year revenue growth in Q1 2025 [1][3][4] Financial Reorganization - The company has entered into a comprehensive agreement with lenders and noteholders, representing approximately 72% of the outstanding principal amount of its term loan and credit facilities, to support the reorganization [3] - The reorganization is expected to be confirmed in about 40 to 45 days, allowing the company to emerge as a publicly traded entity [1][3] - The transaction will reduce annual interest expenses by approximately $50 million and extend the maturity of its debt [6] Operational Continuity - WeightWatchers remains fully operational during the reorganization process, ensuring no impact on its more than three million members worldwide [1][2] - The company will continue to honor all commitments to employees, vendors, and creditors, paying all trade creditors in full [2][5] Strategic Growth Initiatives - The reorganization will provide the company with increased investment flexibility to accelerate innovation and reinvest in member services [4] - The focus will be on enhancing the digital experience and expanding the telehealth business, which has shown significant revenue growth [1][4] Stakeholder Communication - WeightWatchers has launched a dedicated webpage for members to access information about the restructuring process [4] - Stakeholders can contact the company's claims agent for additional information regarding the court-supervised process [7]