What is the purpose of issuing these new notes?

The proceeds from the issuance of the 2.125% Series DD Notes due 2022 are intended for general corporate purposes. This broad designation allows Marriott flexibility to use the funds for working capital needs, capital expenditures, potential acquisitions, stock repurchase programs, or to repay existing debt such as commercial paper or other borrowings.

What is the interest rate and maturity date of these notes?

The notes carry a fixed interest rate of 2.125% per annum. Interest will be paid semi-annually on April 3rd and October 3rd each year, with the first payment due on April 3, 2020. The notes will mature on October 3, 2022.

Can Marriott repay these notes before their maturity date?

Yes, Marriott International has the option to redeem the notes, either in whole or in part, at its discretion, according to the terms outlined in the Form of Note and the governing indenture.

How much did Marriott raise from this offering, and were there any associated costs?

Marriott raised $550 million in aggregate principal amount of notes. After deducting the underwriting discount and estimated expenses related to the offering, the company received net proceeds of approximately $545 million.

MAR 8-K SEC Disclosure

Summary

Marriott International, Inc. (MAR) filed an 8-K on October 3, 2019, to disclose the issuance of $550 million aggregate principal amount of 2.125% Series DD Notes due 2022. The offering, which closed on October 3, 2019, yielded approximately $545 million in net proceeds after accounting for underwriting discounts and expenses. These funds are earmarked for general corporate purposes, including working capital, capital expenditures, potential acquisitions, stock repurchases, or debt repayment. The company will pay semi-annual interest on the Notes on April 3 and October 3, with the first payment due April 3, 2020. The Notes mature on October 3, 2022. Marriott retains the option to redeem the Notes, in whole or in part, under specified terms. The issuance was made under an existing indenture and related registration statements filed with the SEC.

Key Highlights

1Marriott International issued $550 million in 2.125% Series DD Notes due 2022.
2Net proceeds from the offering amounted to approximately $545 million.
3Proceeds are designated for general corporate purposes, offering flexibility for strategic initiatives.
4The Notes mature on October 3, 2022.
5Interest payments are scheduled semi-annually, starting April 3, 2020.
6Marriott has the option to redeem the Notes prior to maturity.
7The issuance is part of the company's ongoing debt financing strategy.

MARRIOTT INTERNATIONAL INC /MD/ 8-K Report, Corporate Update (Oct 3, 2019)

Summary

Key Highlights

Frequently Asked Questions