By Andrea Heisinger
New York, Feb. 22 - Marriott International Inc. tapped the market Wednesday for an upsized $400 million of 3% seven-year series K senior notes to yield Treasuries plus 175 basis points, an informed source said.
The size of the trade was increased from $350 million, the source said.
The notes (Baa2/BBB/BBB) were priced at 98.92 to yield 3.173%.
The securities have a make-whole call at Treasuries plus 30 bps until Dec. 1, 2018 and can be called after that date at par.
The paper also features a change-of-control put at 101%.
Bank of America Merrill Lynch and J.P. Morgan Securities LLC ran the books.
Senior co-managers were Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBS Securities Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC.
Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc. and U.S. Bancorp Investments Inc. were co-managers.
Proceeds will be used for general corporate purposes, including working capital, capital expenditures, acquisitions, stock repurchase or repayment of outstanding commercial paper borrowings.
Marriott last priced bonds in a $400 million deal of 5.625% notes due 2013 on Oct. 16, 2007 at Treasuries plus 135 bps.
The lodging company is based in Bethesda, Md.
| Issuer: | Marriott International, Inc.
|
| Issue: | Series K senior notes
|
| Amount: | $400 million, increased from $350 million
|
| Maturity: | March 1, 2019
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC
|
| Senior co-managers: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBS Securities Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Co-managers: | Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 3%
|
| Price: | 98.92
|
| Yield: | 3.173%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Dec. 1, 2018, after at par
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 22
|
| Settlement date: | Feb. 27
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
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