Marriott International, Inc. () announced Thursday it has completed the issuance of $250 million in 4.875% Series NN Notes due 2029 and $1 billion in 5.650% Series YY Notes due 2036. The company entered into a terms agreement for the offering with a group of underwriters led by J.P. Morgan Securities LLC, PNC Capital Markets LLC, Truist Securities, Inc., and U.S. Bancorp Investments, Inc. on Tuesday.
The Series NN Notes represent an additional issuance to the existing $500 million Series NN Notes initially issued on February 22, 2024. Both series of notes were issued under an indenture dated November 16, 1998, with The Bank of New York Mellon acting as trustee. The new issuance brings Marriott’s total debt to approximately $17.77 billion, with the company maintaining a debt-to-total-capital ratio of 16%. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value estimate.
Net proceeds from the offering are approximately $1.233 billion, after deducting underwriting discounts and estimated expenses, and excluding accrued interest on the new Series NN Notes from May 15, 2026, to the day before settlement, which purchasers paid at closing. According to the company’s statement, the funds will be used for general corporate purposes, which may include working capital, capital expenditures, acquisitions, stock repurchases, or repayment of outstanding indebtedness.
Interest on the Series NN Notes will be paid on May 15 and November 15 each year, starting November 15, 2026, with the notes maturing on May 15, 2029. Interest on the Series YY Notes will be paid on March 15 and September 15 each year, commencing March 15, 2027, with maturity on September 15, 2036. Marriott may redeem the notes, in whole or in part, at its option, under the terms specified in the applicable note forms.
Marriott filed a prospectus dated February 13, 2024, and a prospectus supplement dated August 11, 2026, with the Securities and Exchange Commission as part of its registration statement for the offering.
This information is based on a press release statement and SEC filing.
In other recent news, Marriott International reported higher second-quarter profits, surpassing earnings expectations with adjusted earnings of $3.19 per share, compared to the forecast of $3.05. However, the company’s revenue of $7.07 billion fell short of Wall Street’s projection of $7.17 billion. Following the earnings announcement, Marriott raised its full-year outlook, reflecting optimism about future performance. UBS reiterated a Neutral rating on Marriott, highlighting the company’s decision to increase its full-year gross fee revenue guidance by 1.4%, which includes contributions from new credit card agreements. Meanwhile, Mizuho lowered its price target for Marriott to $374 from $384, maintaining a Neutral rating. This adjustment was due to concerns over owner pushback, which has led Marriott to reduce fees by up to 50 basis points for certain properties. Despite these mixed signals, Marriott’s strategic moves and financial adjustments are drawing attention from analysts and investors alike.
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