Investing.com -- WW International (NASDAQ:WW), better known as WeightWatchers, has initiated restructuring discussions with its lenders, according to a report from the Wall Street Journal, citing sources close to the matter. The company's advisers have signed a confidentiality agreement as they commence these discussions.
The talks are in the initial stages and are aimed at assisting the lender advisers in comprehending WeightWatchers' business plan and financial forecasts. This understanding will help determine the options available to lenders during the negotiations.
The health and wellness company has been under financial strain due to the emergence of weight-loss drugs like Ozempic, which has led to a decrease in the company's revenue in recent quarters.
WeightWatchers has more than $1.4 billion in loans and bonds maturing in 2028 and 2029, in addition to the revolving credit facility due next year.
The company is being advised by Simpson Thacher & Bartlett and PJT Partners (NYSE:PJT), while the lender group is receiving advice from Gibson Dunn & Crutcher and Houlihan Lokey (NYSE:HLI).
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