Summary
Marriott International, Inc. (MAR) announced on March 9, 2012, the successful issuance of $200 million in aggregate principal amount of 3.000% Series K Notes due 2019. The company received net proceeds of approximately $196.5 million from this offering, which was conducted through a Terms Agreement with several underwriters, including J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated. These proceeds are designated for general corporate purposes, offering flexibility for capital expenditures, acquisitions, share repurchases, or the repayment of commercial paper. The new notes constitute an additional issuance and form a single series with previously issued notes of the same denomination and maturity date, underscoring the company's strategy to manage its debt structure. The offering was made under Marriott's existing S-3 Registration Statement and was completed with legal opinions from Gibson, Dunn & Crutcher LLP.
Key Highlights
- 1Marriott International issued $200 million of 3.000% Series K Notes due 2019.
- 2Net proceeds of approximately $196.5 million were realized from the note offering.
- 3Proceeds will be used for general corporate purposes, including working capital, capital expenditures, acquisitions, stock repurchases, and debt repayment.
- 4The new notes are fungible and form a single series with previously issued 3.000% Series K Notes due 2019.
- 5The offering was conducted through a Terms Agreement with a syndicate of underwriters.
- 6Interest payments are scheduled for March 1 and September 1 annually, commencing September 1, 2012.
- 7The notes mature on March 1, 2019, and are redeemable at the company's option.