Summary
Marriott International, Inc. (MAR) filed an 8-K on September 27, 2013, to report on the issuance of new debt. The company entered into a Terms Agreement on September 24, 2013, to issue $350 million in aggregate principal amount of 3.375% Series M Notes due 2020. The net proceeds from this offering were approximately $345.0 million, after deducting underwriting discounts and estimated expenses. These proceeds are designated for general corporate purposes, which could include working capital, capital expenditures, acquisitions, stock repurchases, or the repayment of commercial paper. The notes carry a fixed interest rate of 3.375% and will mature on October 15, 2020. Interest payments are scheduled for April 15 and October 15 annually, starting in April 2014. The company also retains the option to redeem the notes under specific terms.
Key Highlights
- 1Marriott International issued $350 million in 3.375% Series M Notes due 2020.
- 2Net proceeds from the offering amounted to approximately $345.0 million.
- 3Proceeds will be used for general corporate purposes, including potential acquisitions and stock repurchases.
- 4The Notes mature on October 15, 2020.
- 5Interest on the Notes is payable at a rate of 3.375% per annum, semi-annually.
- 6The issuance was conducted under a Terms Agreement with several underwriters, including Deutsche Bank Securities Inc. and Goldman, Sachs & Co.
- 7The Notes are governed by an indenture dated November 16, 1998, with The Bank of New York Mellon as trustee.