Marriott begins buyout offer for Starwood’s 7.15% notes, 3.125% notes

By Susanna Moon

Chicago, Sept. 23 – Marriott International, Inc. began a change-of-control repurchase offer for $209,755,000 principal amount of outstanding 7.15% senior notes due 2019 and $350 million principal amount of outstanding 3.125% senior notes due 2023 issued by Starwood Hotels & Resorts Worldwide, LLC.

Marriott is offering to repurchase the notes at 101% of par because of its acquisition of Starwood on Sept. 23, which constitutes a change of control under the note terms, according to a company announcement.

The company also will pay accrued interest up to the repurchase date of Oct. 25.

Holders may tender their notes for purchase until 5 p.m. ET on Oct. 24.

Marriott said it “is considering strategies to address Starwood's outstanding public debt, including any notes that remain outstanding following the change-of-control repurchase offer ... and intends to take the steps necessary to cause Starwood's outstanding public debt to be pari passu with the outstanding public debt of Marriott.”

Tendered notes may be withdrawn before the end of the offer.

The Bank of New York Mellon (fax 732 667-9408) is the paying agent.

Marriott is a lodging company is based in Bethesda, Md. Starwood is a Stamford, Conn.-based hotel and leisure company.

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