Marriott International to sell bonds


NEW YORK -- Marriott International Inc. said it filed with the Securities and Exchange Commission to sell $150 million of 10-year bonds.

The SEC filing follows a month after Marriott International was created by Marriott Corp.'s split in two. The bond sale would be the first since the reorganization proposal in 1992, which enraged bondholders who saw their investments' value plunge as much as 30 percent.

Marriott's split resulted in Marriott International, a profitable hotel management company; and Host Marriott Corp., a debt-laden owner of hotels, retirement homes and toll-road and airport concessions.

The reorganization hurt the company's bonds because Marriott shifted most of its $3 billion debt to Host Marriott.

Marriott said it plans to use proceeds from the bond sale for working capital and repayment of debt. Lehman Brothers, Donaldson, Lufkin & Jenrette and Smith Barney Shearson Inc. will underwrite the bonds.

Copyright © 2020, The Baltimore Sun, a Baltimore Sun Media Group publication | Place an Ad