Summary
Marriott International, Inc. (MAR) filed an 8-K report on September 10, 2012, detailing the issuance of $350 million in 3.250% Series L Notes due 2022. The company received net proceeds of approximately $346.2 million from this offering, which will be utilized for general corporate purposes. These purposes include working capital, capital expenditures, potential acquisitions, stock repurchases, and the repayment of commercial paper debt as it matures. The issuance of these notes was conducted under an existing indenture and the terms were established through a Terms Agreement with J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, and other underwriters. The notes will pay interest semi-annually, with the first payment due March 15, 2013, and will mature on September 15, 2022. The company retains the option to redeem the notes under specified terms. This filing provides transparency regarding Marriott's capital raising activities and its intended use of funds to support ongoing operations and strategic initiatives.
Key Highlights
- 1Marriott International issued $350 million aggregate principal amount of 3.250% Series L Notes due 2022.
- 2The net proceeds from the offering were approximately $346.2 million.
- 3Proceeds are designated for general corporate purposes, including working capital, capital expenditures, acquisitions, and debt repayment.
- 4Interest on the notes will be paid semi-annually on March 15 and September 15, commencing March 15, 2013.
- 5The notes mature on September 15, 2022.
- 6Marriott has the option to redeem the notes, in whole or in part, according to the terms outlined.
- 7The offering was conducted under an existing indenture and a Terms Agreement with several underwriters.