Summary
Marriott International, Inc. (MAR) announced on March 8, 2019, the successful closing of a public offering of debt securities. The company issued $300 million aggregate principal amount of Floating Rate Series BB Notes due 2021 and $550 million aggregate principal amount of 3.600% Series CC Notes due 2024, for a total issuance of $850 million. The net proceeds received by Marriott after underwriting discounts and expenses amounted to approximately $841 million. These funds are designated for general corporate purposes. This includes flexibility for potential uses such as working capital needs, capital expenditures, strategic acquisitions, share repurchase programs, or the repayment of existing short-term debt like commercial paper. The issuance of these notes diversifies Marriott's debt maturity profile and provides capital for ongoing business operations and potential growth initiatives.
Key Highlights
- 1Marriott International issued $850 million in aggregate principal amount of new debt notes.
- 2The debt issuance includes $300 million of Floating Rate Series BB Notes due 2021.
- 3The debt issuance also includes $550 million of 3.600% Series CC Notes due 2024.
- 4The company received net proceeds of approximately $841 million from the offering.
- 5Proceeds are intended for general corporate purposes, offering financial flexibility.
- 6Potential uses for proceeds include working capital, capital expenditures, acquisitions, stock repurchases, and debt repayment.
- 7The notes were issued under Marriott's existing shelf registration statement and under an indenture dated November 16, 1998.