Summary
Marriott International, Inc. filed an 8-K report on June 14, 2005, detailing the closing of a debt offering. The company successfully sold $350 million in aggregate principal amount of its 4 5/8% Series F Notes due 2012. The net proceeds from this offering amounted to approximately $345.9 million, after accounting for underwriting discounts and estimated expenses. These funds are earmarked for repaying commercial paper borrowings and general corporate purposes, indicating a strategic move to manage its short-term debt and provide flexibility for ongoing operations. The notes will accrue interest semi-annually, with the first payment due in December 2005, and will mature in June 2012. This debt issuance provides Marriott with a significant capital injection to support its business activities.
Key Highlights
- 1Marriott International successfully issued $350 million in 4 5/8% Series F Notes due 2012.
- 2The offering closed on June 14, 2005.
- 3Net proceeds of approximately $345.9 million were received after deducting underwriting fees and expenses.
- 4Proceeds will be used to repay commercial paper borrowings and for general corporate purposes.
- 5Interest on the notes is payable semi-annually on June 15 and December 15, with the first payment on December 15, 2005.
- 6The notes mature on June 15, 2012.
- 7The debt issuance was structured under an existing indenture with JPMorgan Chase Bank, N.A. as trustee.