What is the purpose of the $800 million in notes issued by Marriott?

The net proceeds from the $800 million offering of 4.900% Series KK Notes due 2029 are intended for Marriott's general corporate purposes. This can include working capital needs, capital expenditures, acquisitions, stock repurchases, or the repayment of outstanding indebtedness.

When will Marriott start paying interest on these new notes and when do they mature?

Interest on the Notes will be paid on April 15 and October 15 of each year, with the first payment commencing on October 15, 2023. The Notes will mature on April 15, 2029.

How much did Marriott actually receive after fees and expenses from the note offering?

After deducting the underwriting discount and estimated expenses of the offering, Marriott received net proceeds of approximately $783 million from the $800 million principal amount of notes issued.

Under what agreement were these notes issued?

The Notes were issued under an indenture dated as of November 16, 1998, with The Bank of New York Mellon as the trustee.

MAR 8-K SEC Disclosure — Mar 27, 2023

Summary

Marriott International, Inc. (MAR) announced on March 27, 2023, the closing of an offering of $800,000,000 aggregate principal amount of its 4.900% Series KK Notes due 2029. The company received net proceeds of approximately $783 million after underwriting discounts and expenses. These funds are intended for general corporate purposes, including potential investments in working capital, capital expenditures, acquisitions, share buybacks, or debt repayment. This debt issuance provides Marriott with additional capital flexibility. Investors should note the fixed interest rate of 4.900% and the maturity date of April 15, 2029. The company's ability to use these proceeds for various strategic initiatives, such as acquisitions or share repurchases, suggests a proactive approach to capital management and potential future growth or shareholder return.

Key Highlights

1Marriott International successfully issued $800 million in 4.900% Series KK Notes due 2029.
2The net proceeds received from the offering amounted to approximately $783 million.
3Funds are designated for general corporate purposes, offering flexibility for future investments.
4The notes mature on April 15, 2029, with semi-annual interest payments starting October 15, 2023.
5The offering was conducted through a Terms Agreement with several underwriters, including J.P. Morgan Securities LLC.
6The notes were issued under an existing indenture dated November 16, 1998.
7Relevant offering documents and legal opinions have been filed as exhibits to the report.

MARRIOTT INTERNATIONAL INC /MD/ 8-K Report, Corporate Update (Mar 27, 2023)

Summary

Key Highlights

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