Marriott International Announces Pricing of its Debt Tender Offer

Rhea-AI Summary

Marriott International (NASDAQ: MAR) has announced a cash tender offer to purchase up to $1 billion of its outstanding notes, including the 5.750% Series EE Notes, 3.750% Series P Notes, and 3.750% Series V Notes, all due in 2025. The Early Tender Time is set for September 21, 2021, with the Early Settlement Date expected to occur on September 23, 2021. Due to the high demand, only Series EE Notes will be accepted on a prorated basis. The offer will expire on October 5, 2021.

Positive

• Marriott is actively managing its debt by initiating a tender offer for up to $1 billion.
• The offer reflects strong demand, as evidenced by the tendered amounts exceeding the maximum principal amount.

Negative

• Marriott is only accepting Series EE Notes on a prorated basis due to the high volume of tendered notes, indicating possible liquidity concerns.

BETHESDA, Md., Sept. 22, 2021 /PRNewswire/ -- Marriott International, Inc. (NASDAQ: MAR) today announced the consideration payable in connection with its previously announced offer to purchase for cash up to $1,000,000,000 in aggregate principal amount (such aggregate principal amount, the "Maximum Principal Amount") of its 5.750% Series EE Notes due 2025 (the "Series EE Notes"), 3.750% Series P Notes due 2025 (the "Series P Notes") and 3.750% Series V Notes due 2025 (the "Series V Notes" and, together with the Series EE Notes and the Series P Notes, the "Notes").  The offer to purchase the Notes is referred to herein as the "Offer." 

The Offer was made upon the terms and subject to the conditions set forth in the offer to purchase, dated September 8, 2021 (as may be amended or supplemented from time to time, the "Offer to Purchase").  Capitalized terms used but not defined in this announcement have the meanings given to them in the Offer to Purchase.

Title of Security	CUSIP	Principal Amount Outstanding (in millions)	Early Tender Premium(1)	Reference Security	Bloomberg Reference Page/Screen	Reference Yield	Fixed Spread (basis points)	Total Consideration (1)(2)
5.750% Series EE Notes due 2025	571903BD4	$1,600	$30.00	0.75% U.S. Treasury due August 31, 2026	FIT1	0.836%	+45	$1,153.24

(1)      Per $1,000 principal amount.

(2)      The Total Consideration for Notes validly tendered (and not validly withdrawn) at or prior to the Early Tender Time (as defined below) and accepted for purchase is calculated using the applicable Fixed Spread (as set forth in the table above) and is inclusive of the Early Tender Premium (as set forth in the table above).

All documentation relating to the Offer, including the Offer to Purchase, together with any updates, are available from the Tender and Information Agent (as defined below) and is also available via the Offer website: http://www.dfking.com/MAR.

The Financing Condition has been satisfied. Subject to satisfaction or waiver of the General Conditions by such date, all Notes validly tendered (and not validly withdrawn) at or prior to the Early Tender Time and accepted for purchase will be purchased by the Company on the "Early Settlement Date," which is expected to occur on September 23, 2021.  Payment for the Notes that are purchased will include accrued and unpaid interest on such Notes, rounded to the nearest cent per $1,000 principal amount of Notes, from the last interest payment date up to, but not including, the Early Settlement Date.

Since the amount of Notes validly tendered (and not validly withdrawn) at or prior to the Early Tender Time exceeded the Maximum Principal Amount, the Company is accepting Series EE Notes only on a prorated basis and the Company will not accept any Series P Notes or Series V Notes.

The Offer is scheduled to expire at 11:59 p.m., New York City time, on October 5, 2021 (unless the Offer is extended or terminated) (such date and time, the "Expiration Time").  Withdrawal rights expired at 5:00 p.m., New York City time, on September 21, 2021.  Notes that have been tendered may no longer be withdrawn.  Since the amount of Notes validly tendered (and not validly withdrawn) at or prior to the Early Tender Time exceeded the Maximum Principal Amount, no additional Notes will be accepted for purchase after the Early Tender Time.

Subject to applicable law and limitations described in the Offer to Purchase, Marriott expressly reserves the right, in its sole discretion, to amend, extend or, upon failure of any condition described in the Offer to Purchase to be satisfied or waived, to terminate the Offer at any time at or prior to the Expiration Time. Marriott also reserves the right, in its sole discretion, subject to applicable law, to terminate the Offer at any time at or prior to the Expiration Time. 

Marriott has retained Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC to act as the Dealer Managers in connection with the Offer (collectively, the "Dealer Managers").  Questions regarding terms and conditions of the Offer should be directed to Deutsche Bank Securities Inc. by calling toll free at (866) 627-0391 or collect at (212) 250-2955, or to Goldman Sachs & Co. LLC by calling toll free at 800-828-3182 or collect at 212-357-1452.

D.F. King & Co., Inc. has been appointed as tender and information agent (the "Tender and Information Agent") in connection with the Offer.  Questions or requests for assistance in connection with the Offer or for additional copies of the Offer to Purchase, may be directed to D.F. King & Co., Inc. by calling toll free 800-859-8511 or collect at 212-269-5550 or via e-mail at MAR@dfking.com.  You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Offer.  The Offer to Purchase can be accessed at the Offer website: http://www.dfking.com/MAR.

Neither this announcement nor the Offer to Purchase, or the electronic transmission thereof, constitutes an offer to sell or buy Notes, as applicable, in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such offer or solicitation under applicable securities laws or otherwise. 

The distribution of this announcement in certain jurisdictions may be restricted by law.  In those jurisdictions where the securities, blue sky or other laws require the Offer to be made by a licensed broker or dealer and the Dealer Managers or any of their respective affiliates is such a licensed broker or dealer in any such jurisdiction, the Offer shall be deemed to be made by the Dealer Managers or such affiliate (as the case may be) on behalf of Marriott in such jurisdiction.

Cautionary Language Concerning Forward-Looking Statements

All statements in this press release are made as of September 22, 2021.  Except as required by applicable law, Marriott undertakes no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise.  This press release contains "forward-looking statements" within the meaning of federal securities laws, including statements related to the expected timing and completion of the Offer and similar statements concerning anticipated future events and expectations that are not historical facts.  Marriott cautions you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that Marriott may not be able to accurately predict or assess, including those Marriott identifies in the Offer to Purchase and other risk factors that Marriott identifies in its Securities and Exchange Commission filings, including Marriott's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2021.  Risks that could affect forward-looking statements in this press release include, without limitation, that the Offer is subject to market conditions and a number of other conditions and approvals.  There can be no assurance that the Offer will be completed as described herein or at all.  Any of these factors could cause actual results to differ materially from the expectations Marriott expresses or implies in this press release.

Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of roughly 7,800 properties under 30 leading brands spanning 138 countries and territories.  Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world.  The company offers Marriott Bonvoy®, its highly-awarded travel program.  For more information, please visit Marriott's website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.

Marriott may post updates about COVID-19 and other matters on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com.  Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on these websites, which may be material.  The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the SEC, and any references to the websites are intended to be inactive textual references only.

IRPR#1

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/marriott-international-announces-pricing-of-its-debt-tender-offer-301383188.html

SOURCE Marriott International, Inc.

FAQ

What is Marriott's recent debt tender offer amount?

Marriott announced a debt tender offer amounting to $1 billion for its outstanding notes.

When is the Early Settlement Date for Marriott's tender offer?

The Early Settlement Date is expected to occur on September 23, 2021.

What types of notes is Marriott buying back?

Marriott is offering to buy back its 5.750% Series EE Notes, 3.750% Series P Notes, and 3.750% Series V Notes, all due in 2025.

When does Marriott's tender offer expire?

The tender offer is scheduled to expire at 11:59 p.m. New York City time on October 5, 2021.