Summary
Marriott International, Inc. (MAR) has filed an 8-K report on November 16, 2018, detailing a significant debt offering. The company successfully issued a total of $1.2 billion in new notes across three series: $550 million in Floating Rate Series Y Notes due 2020, $350 million in 4.150% Series Z Notes due 2023, and $300 million in 4.650% Series AA Notes due 2028. The offering, which closed on November 16, 2018, generated net proceeds of approximately $1.190 billion after accounting for underwriting discounts and expenses. These substantial proceeds are earmarked for general corporate purposes, providing Marriott with financial flexibility. Potential uses include bolstering working capital, funding capital expenditures, pursuing strategic acquisitions, executing stock repurchase programs, or retiring existing commercial paper and other debt obligations. This proactive financing move by Marriott suggests a strategy to manage its capital structure and support its ongoing business operations and growth initiatives.
Key Highlights
- 1Marriott International issued $1.2 billion in aggregate principal amount of new notes.
- 2The offering includes $550 million in Floating Rate Series Y Notes due 2020.
- 3The offering includes $350 million in 4.150% Series Z Notes due 2023.
- 4The offering includes $300 million in 4.650% Series AA Notes due 2028.
- 5Net proceeds from the offering amounted to approximately $1.190 billion.
- 6Proceeds are intended for general corporate purposes, including working capital, capital expenditures, acquisitions, stock repurchases, and debt repayment.
- 7The notes were issued under an indenture dated November 16, 1998, with The Bank of New York Mellon as trustee.