Summary
Marriott International, Inc. (MAR) has filed an 8-K report detailing an amendment and restatement of its multicurrency revolving credit agreement, effective June 23, 2011. This significant update primarily involves extending the maturity date of the credit facility from May 14, 2012, to June 23, 2016. Additionally, the total borrowing capacity under the agreement has been reduced from $2.404 billion to $1.75 billion, a adjustment reflecting the company's current business requirements and financial strategy. The amended agreement maintains its structure where borrowings are tied to LIBOR plus a spread determined by Marriott's public debt rating, with quarterly fees also linked to this rating. This proactive adjustment to its credit facilities indicates Marriott's focus on financial flexibility and prudent management of its capital structure, providing a clear line of credit for its operations and strategic initiatives through mid-2016.
Key Highlights
- 1Marriott International amended and restated its multicurrency revolving credit agreement.
- 2The maturity date of the credit facility has been extended from May 14, 2012, to June 23, 2016.
- 3The aggregate effective borrowing capacity has been reduced from $2.404 billion to $1.75 billion.
- 4The amendment reflects the company's current business needs and financial strategy.
- 5Borrowings continue to be based on LIBOR plus a spread determined by the public debt rating.
- 6Quarterly fees are also based on the company's public debt rating.
- 7The agreement is with Bank of America, N.A. as administrative agent and certain banks.