Summary
Marriott International, Inc. (MAR) announced on April 16, 2020, the successful completion of a public offering of $1.6 billion aggregate principal amount of 5.750% Series EE Notes due 2025. The company received net proceeds of approximately $1.581 billion after deducting underwriting discounts and expenses. These funds are designated for general corporate purposes, which may include working capital needs, capital expenditures, potential acquisitions, or the repayment of existing debt such as commercial paper or other borrowings. This debt issuance occurred amidst the early stages of the COVID-19 pandemic, indicating Marriott's proactive approach to securing liquidity. The proceeds provide financial flexibility to navigate the uncertain economic environment and support ongoing business operations and strategic initiatives. Investors should note the coupon rate of 5.750% and the maturity date of May 1, 2025.
Key Highlights
- 1Marriott International issued $1.6 billion in aggregate principal amount of 5.750% Series EE Notes due 2025.
- 2The offering generated net proceeds of approximately $1.581 billion after fees and expenses.
- 3Proceeds are intended for general corporate purposes, including working capital, capital expenditures, acquisitions, and debt repayment.
- 4Interest on the notes is payable semi-annually on May 1 and November 1, with the first payment on November 1, 2020.
- 5The notes mature on May 1, 2025.
- 6Marriott retains the option to redeem the notes, in whole or in part, under specified terms.
- 7The issuance was conducted under an existing shelf registration statement (Form S-3).