Summary
Marriott International, Inc. (MAR) filed an 8-K on June 25, 2007, to report the closing of a debt offering. The company successfully sold $350 million aggregate principal amount of its 6.375% Series I Notes due 2017. The net proceeds received by Marriott were approximately $346 million after accounting for underwriting discounts and expenses. These funds are earmarked for general corporate purposes, which include working capital, capital expenditures, potential acquisitions, stock repurchases, and the repayment of commercial paper borrowings. These notes carry a fixed interest rate of 6.375% and will pay interest semi-annually on June 15 and December 15, with the first payment due on December 15, 2007. The notes mature on June 15, 2017, and are redeemable under the terms specified in the offering documents. This issuance is part of Marriott's ongoing strategy to manage its capital structure and fund its business operations and growth initiatives.
Key Highlights
- 1Marriott International issued $350 million of 6.375% Series I Notes due 2017.
- 2The offering closed on June 25, 2007.
- 3Net proceeds from the offering were approximately $346 million.
- 4Proceeds are intended for general corporate purposes, including working capital, capital expenditures, acquisitions, and debt repayment.
- 5Interest payments are scheduled semi-annually, on June 15 and December 15, commencing December 15, 2007.
- 6The notes mature on June 15, 2017.
- 7The debt issuance was conducted under an indenture with The Bank of New York as trustee.