WW International starts talks to address balance sheet concerns - Bloomberg

WW International (NASDAQ: WW ) Inc. has initiated discussions to address the company's balance sheet issues, according to Bloomberg, citing sources familiar with the situation. The company, known for its WeightWatchers brand and diet-related products and services, is facing increased competition from new weight-loss drugs.

These talks are still in the early stages, the sources noted. WW International had previously announced during its third-quarter earnings call that it had hired advisers to assist in evaluating options for its capital structure.

The company is collaborating with PJT Partners (NYSE: PJT ) in this process, according to the same sources. Additionally, a group of the company’s creditors has engaged Houlihan Lokey Inc (NYSE: HLI ). and Gibson Dunn & Crutcher as advisers in preparation for discussions with WW International.

The company's term loan, due in 2028, is currently quoted at around 23 cents on the dollar. This is a significant drop from 71.75 cents at the end of 2023, as per data compiled by Bloomberg.