Summary
Marriott International, Inc. (MAR) filed an 8-K on October 9, 2014, reporting the completion of a debt offering. The company successfully issued $400 million in aggregate principal amount of 3.125% Series N Notes due 2021. The net proceeds received from this offering amounted to approximately $394.2 million after accounting for underwriting discounts and estimated expenses. These funds are earmarked for general corporate purposes, providing Marriott with financial flexibility. Potential uses include bolstering working capital, funding capital expenditures, pursuing acquisitions, supporting share repurchase programs, or managing commercial paper borrowings. The Notes will pay semi-annual interest on April 15 and October 15, with the first payment due April 15, 2015, and will mature on October 15, 2021. This issuance is part of Marriott's ongoing capital management strategy.
Key Highlights
- 1Marriott International issued $400 million of 3.125% Series N Notes due 2021.
- 2The offering closed on October 9, 2014, with net proceeds of approximately $394.2 million.
- 3Proceeds will be used for general corporate purposes, including working capital, capital expenditures, acquisitions, and stock repurchases.
- 4Interest on the Notes will be paid semi-annually on April 15 and October 15.
- 5The Notes mature on October 15, 2021.
- 6The issuance was conducted under a Terms Agreement with J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. as underwriters.
- 7The Notes were issued under an existing indenture dated November 16, 1998.