Marriott $2 billion draw down taps credit facility in full

By Rebecca Melvin

New York, April 3 – Marriott International, Inc. is drawing down $2 billion under its credit facility, bringing its total outstanding under the credit facility to $4.5 billion, according to an 8-K filing with the Securities and Exchange Commission on Friday.

The borrowing is being taken to increase its cash position and preserve financial flexibility in light of uncertainty in global markets resulting from the Covid-19 pandemic, the company said.

The proceeds are currently being held in cash, resulting in total cash and cash equivalents of about $3.7 billion on April 2. Also as of April 2, Marriott had about $2 billion of commercial paper outstanding. The proceeds from the incremental credit facility borrowings may be used in the future to repay commercial paper when it matures and for general corporate or other purposes permitted by the credit facility.

Marriott has a fifth amended and restated credit agreement with Bank of America NA as administrative agent that expires June 28, 2024.

The lodging company is based in Bethesda, Md.

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