8-KMaterial AgreementsFinancial EventsExhibits & Filings

MARRIOTT INTERNATIONAL INC /MD/ 8-K Report, Material Agreement (May 16, 2007)

Filed May 16, 2007For Securities:MAR

Summary

Marriott International, Inc. (MAR) has filed an 8-K report on May 16, 2007, to announce the amendment and restatement of its multicurrency revolving credit agreement. This amendment significantly enhances the company's financial flexibility by increasing the total borrowing capacity from $2 billion to $2.5 billion. Additionally, the maturity date for this facility has been extended by one year, from 2011 to 2012. This move is generally positive for investors as it demonstrates Marriott's strong credit standing and its proactive approach to managing its liquidity. The increased credit line provides a larger financial cushion for potential investments, acquisitions, or to navigate any unforeseen economic downturns. The extended maturity reduces near-term refinancing risk, assuring stakeholders of continued access to capital over a longer horizon without immediate pressure to secure new credit facilities.

Key Highlights

  • 1Marriott International amended and restated its multicurrency revolving credit agreement on May 14, 2007.
  • 2The aggregate borrowing capacity under the credit facility was increased from $2 billion to $2.5 billion.
  • 3The expiration date of the credit facility was extended from 2011 to 2012.
  • 4The material terms of the credit agreement, beyond the capacity and expiration date, remain unchanged.
  • 5Citibank, N.A. continues to serve as the administrative agent for the credit facility.
  • 6This filing indicates proactive financial management and enhanced liquidity for Marriott International.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report a material definitive agreement, specifically the amendment and restatement of Marriott International's multicurrency revolving credit agreement. This updates investors on significant changes to the company's credit facilities.

The increase in borrowing capacity from $2 billion to $2.5 billion provides Marriott International with greater financial flexibility. This enhanced liquidity can be used for various corporate purposes, such as funding growth initiatives, acquisitions, capital expenditures, or to manage working capital needs more effectively.

Extending the expiration date from 2011 to 2012 reduces the company's near-term refinancing risk. It assures investors and lenders that Marriott has secured access to capital for a longer period, providing more certainty for future financial planning and operations.

No, this amendment is generally interpreted as a sign of strength. Increasing borrowing capacity and extending credit terms typically indicates that the company has a strong credit profile and is proactively managing its finances to support its business strategy and ensure liquidity.