8-KMaterial AgreementsExhibits & Filings

MARRIOTT INTERNATIONAL INC /MD/ 8-K Report, Material Agreement (Jul 5, 2005)

Filed July 5, 2005For Securities:MAR

Summary

This 8-K filing from Marriott International, Inc. reports on an amendment to a synthetic fuel facility agreement. Specifically, on June 30, 2005, Marriott entered into a Fifth Amendment Agreement regarding Synthetic American Fuel Enterprises II, LLC. This amendment grants Marriott's synthetic fuel partner the option to have Marriott redeem its approximately 50 percent ownership interest in three synthetic fuel facilities. The redemption can occur on either November 30, 2005, or December 31, 2005. Additionally, the filing notes that as of June 1, 2005, the partner's share of tax credits from these facilities has reverted to approximately 50 percent. Investors should note that this amendment introduces a potential future cash outflow or operational change for Marriott related to these synthetic fuel assets. The full details of the agreement are available as an exhibit to this report.

Key Highlights

  • 1Marriott International entered into a Fifth Amendment Agreement related to its synthetic fuel joint venture, Synthetic American Fuel Enterprises II, LLC, on June 30, 2005.
  • 2The amendment grants Marriott's synthetic fuel partner an option to have Marriott redeem its 50% ownership interest in three synthetic fuel facilities.
  • 3The redemption option can be exercised on either November 30, 2005, or December 31, 2005.
  • 4Effective June 1, 2005, the partner's share of tax credits from these facilities has returned to approximately 50%.
  • 5This event could lead to a future cash outflow for Marriott if the partner exercises its redemption option.
  • 6The specific terms of the amendment are detailed in Exhibit 10 filed with this report.

Frequently Asked Questions

The main purpose of the Fifth Amendment Agreement is to grant Marriott's synthetic fuel partner the right to require Marriott to redeem its 50% ownership stake in three synthetic fuel facilities on specific dates in late 2005.

If the partner exercises its redemption option, Marriott would likely incur a cash outflow to acquire the partner's 50% interest. The exact financial impact would depend on the valuation of that interest at the time of redemption, which is not detailed in this 8-K filing.

The mention of the partner's share of tax credits returning to approximately 50% effective June 1, 2005, provides context on the ongoing financial structure of the joint venture and may influence the partner's decision regarding the redemption option.

More detailed information about the Fifth Amendment Agreement can be found in Exhibit 10, which is filed as part of this 8-K report.