8-KOther EventsExhibits & Filings

MARRIOTT INTERNATIONAL INC /MD/ 8-K Report, Corporate Update (Jun 1, 2020)

Filed June 1, 2020For Securities:MAR

Summary

Marriott International, Inc. (MAR) announced on May 31, 2020, the completion of a public offering of $1.0 billion in aggregate principal amount of 4.625% Series FF Notes due 2030. The company received net proceeds of approximately $985 million after accounting for underwriting discounts and estimated expenses. These funds are earmarked for general corporate purposes, including the potential repayment of existing debt obligations and amounts drawn under its revolving credit facility. This offering provides Marriott with additional liquidity to manage its financial obligations, particularly in the uncertain economic environment of mid-2020. The issuance of these notes, with interest payments semi-annually and a maturity date of June 15, 2030, is a strategic move to bolster its balance sheet. The terms of the notes allow for redemption at the company's option. The filing includes various supporting documents such as the Terms Agreement, the Form of Note, an Indenture Officers' Certificate, and legal opinions, all incorporated into its existing SEC registration statement.

Key Highlights

  • 1Marriott International completed an offering of $1.0 billion in 4.625% Notes due 2030.
  • 2Net proceeds from the offering were approximately $985 million.
  • 3Proceeds are intended for general corporate purposes, including debt repayment.
  • 4The Notes mature on June 15, 2030, with interest payable semi-annually.
  • 5The company has the option to redeem the Notes, in whole or in part.
  • 6The offering was conducted under an existing SEC registration statement.
  • 7Key legal and underwriting documents related to the offering are filed as exhibits.

Frequently Asked Questions

Marriott issued these notes to raise approximately $985 million in net proceeds to strengthen its financial position and provide liquidity for general corporate purposes. This includes managing outstanding indebtedness and potentially drawing on its credit facility, which is a common strategy for companies to ensure they have sufficient cash on hand, especially during periods of economic uncertainty.

The notes bear a fixed interest rate of 4.625% per year, payable semi-annually on June 15 and December 15, with the first payment on December 15, 2020. The principal amount will mature on June 15, 2030. Marriott also has the option to redeem the notes before their maturity date.

The net proceeds are designated for general corporate purposes. This explicitly includes the potential repayment of outstanding indebtedness, which could cover upcoming bond maturities or amounts borrowed under Marriott's existing credit agreement.

While these are specifically designated as 4.625% Series FF Notes due 2030, the issuance is structured under an existing indenture dated November 16, 1998. The offering itself was made under a shelf registration statement, indicating a common and established method for Marriott to access capital markets.