Summary
Marriott International, Inc. (MAR) filed an 8-K on February 27, 2012, to report on the issuance of $400 million aggregate principal amount of 3.000% Series K Notes due 2019. The offering, which closed on February 22, 2012, generated net proceeds of approximately $392.5 million after deducting underwriting discounts and estimated expenses. These funds are designated for general corporate purposes, which may include working capital, capital expenditures, acquisitions, stock repurchases, or the repayment of commercial paper. The notes bear interest semi-annually on March 1 and September 1, with the first payment due September 1, 2012, and mature on March 1, 2019. This debt issuance allows Marriott to bolster its financial flexibility and pursue strategic initiatives.
Key Highlights
- 1Marriott International issued $400 million in 3.000% Series K Notes due 2019.
- 2The notes were issued under a Terms Agreement dated February 22, 2012.
- 3Net proceeds from the offering amounted to approximately $392.5 million.
- 4Proceeds are intended for general corporate purposes, including working capital, capital expenditures, acquisitions, stock repurchases, or debt repayment.
- 5Interest payments are scheduled for March 1 and September 1 annually, with the first payment on September 1, 2012.
- 6The notes will mature on March 1, 2019.
- 7The issuance was conducted under the company's existing shelf registration statement.