Summary
Marriott International, Inc. (MAR) filed an 8-K on July 19, 2013, to report a material amendment to its revolving credit agreement. The key change is the extension of the agreement's expiration date from June 23, 2016, to July 18, 2018, providing a longer-term liquidity backstop. Additionally, the facility size has been increased from $1.75 billion to $2.00 billion, enhancing Marriott's financial flexibility and borrowing capacity.
Key Highlights
- 1Marriott International amended and restated its multicurrency revolving credit agreement.
- 2The expiration date of the credit agreement has been extended by over two years, from June 23, 2016, to July 18, 2018.
- 3The aggregate effective borrowing capacity under the credit facility has been increased from $1.75 billion to $2.00 billion.
- 4This amendment provides Marriott with extended financial flexibility and a larger liquidity pool.
- 5Borrowings under the agreement generally bear interest at LIBOR plus a spread based on the company's public debt rating.
- 6The filing incorporates by reference the details of the credit agreement amendment into the 'Creation of a Direct Financial Obligation' item.
- 7The primary exhibit filed is the Third Amended and Restated Credit Agreement dated July 18, 2013.