Summary
Marriott International, Inc. (MAR) filed an 8-K report on May 10, 2002, detailing the results of its offer to repurchase its Liquid Yield Option Notes due 2021. The company successfully repurchased approximately 85% of the outstanding Notes, totaling around $400 million in principal amount, for approximately $347 million in cash. This action significantly reduces the company's long-term debt obligations and indicates a proactive approach to managing its capital structure. Approximately $70 million in principal amount of the Notes remain outstanding. The repurchase offer, which closed on May 8, 2002, was made available to holders who tendered their Notes by that date. The attached press release, filed as Exhibit 99.1, likely provides further details on the transaction and its implications for Marriott's financial health and future strategies.
Key Highlights
- 1Marriott International repurchased approximately $400 million aggregate principal amount of its Liquid Yield Option Notes due 2021.
- 2The repurchase represents approximately 85% of the Notes that were outstanding prior to the offer.
- 3The aggregate cash consideration paid for the repurchased Notes was approximately $347 million.
- 4This transaction significantly reduces Marriott's outstanding long-term debt.
- 5Approximately $70 million in principal amount of the Notes remain outstanding.
- 6The tender offer for the Notes expired on May 8, 2002.
- 7A press release detailing the event is included as an exhibit to the filing.