Summary
Marriott International, Inc. (MAR) has filed an 8-K report detailing the successful repurchase of all its outstanding Liquid Yield Option Notes due 2021. The company exercised its option to buy back these notes, which had an aggregate principal amount of approximately $70 million at maturity, on May 11, 2004, for a total cash consideration of roughly $62 million. This action effectively retires all of these specific senior notes, which carried a low yield to maturity of 0.75 percent. A significant implication for investors is the expected decrease in Marriott's fully diluted share count, as the repurchased notes were convertible into approximately 0.9 million shares of Class A Common Stock. The company has attached a press release detailing this event as an exhibit.
Key Highlights
- 1Marriott International repurchased all outstanding Liquid Yield Option Notes due 2021 on May 11, 2004.
- 2The aggregate principal amount of the repurchased notes was approximately $70 million.
- 3The total cash consideration paid for the repurchase was approximately $62 million.
- 4The notes carried a low yield to maturity of 0.75 percent.
- 5The repurchase eliminates the possibility of future dilution from these specific notes converting into common stock.
- 6Marriott's fully diluted share count is expected to decrease as a result of this transaction.
- 7A press release regarding the repurchase is included as an exhibit to the filing.