Summary
Marriott International, Inc. (MAR) filed an 8-K on June 8, 2005, reporting the execution of a new multicurrency revolving credit agreement. This new facility, effective June 6, 2005, provides up to $2 billion in borrowing capacity and matures on June 6, 2010. The agreement replaces two prior credit facilities that were set to expire in 2006, consolidating the company's credit arrangements and extending their maturity. This strategic move enhances Marriott's financial flexibility by providing a robust credit line to support its commercial paper program and letter of credit needs for an extended period. The terms remain largely consistent with the previous agreements, including interest being tied to LIBOR plus a spread based on the company's public debt rating, ensuring cost-effective access to capital.
Key Highlights
- 1Marriott entered into a new $2 billion multicurrency revolving credit agreement.
- 2The new credit facility has an expiration date of June 6, 2010.
- 3This agreement replaces two existing credit agreements with an aggregate amount of $2 billion.
- 4The new facility will support Marriott's commercial paper program and letters of credit.
- 5Borrowing costs are based on LIBOR plus a spread determined by Marriott's public debt rating.
- 6The new credit agreement became effective on June 6, 2005.
- 7Two previous credit agreements, which would have expired in 2006, were terminated.