8-KOther EventsExhibits & Filings

MARRIOTT INTERNATIONAL INC /MD/ 8-K Report, Corporate Update (Feb 27, 2012)

Filed February 27, 2012For Securities:MAR

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.

Frequently Asked Questions

This 8-K filing is to report a significant corporate event: the issuance of new debt. Specifically, Marriott International entered into an agreement to issue $400 million of 3.000% Series K Notes due 2019.

Marriott International raised $400 million in aggregate principal amount from the issuance of the notes. After accounting for underwriting discounts and estimated expenses, the net proceeds were approximately $392.5 million.

The company plans to use the net proceeds for general corporate purposes. This broad category may include financing working capital needs, funding capital expenditures, pursuing potential acquisitions, repurchasing stock, or repaying commercial paper borrowings as they mature.

The notes carry a fixed interest rate of 3.000% per annum, payable semi-annually on March 1 and September 1, with the first payment on September 1, 2012. The notes are scheduled to mature on March 1, 2019. They are also redeemable at the company's option under specified terms.