Marriott restates revolver to increase to $4 billion, extend maturity

By Marisa Wong

Morgantown, W.Va., June 13 – Marriott International, Inc. entered into a fourth amended and restated credit agreement on June 10 with Bank of America, NA as administrative agent to amend and restate its $2 billion multicurrency revolving credit facility dated July 18, 2013.

The amended agreement extends the maturity date to June 10, 2021 from July 18, 2018 and increases the size of the facility to $4 billion, of which $2.5 billion is currently available, according to an 8-K filing with the Securities and Exchange Commission.

Upon closing of the company’s previously announced acquisition of Starwood Hotels & Resorts Worldwide, Inc., which remains subject to antitrust approvals and other closing conditions, the full $4 billion of aggregate commitments will be available.

The amended agreement adjusts the calculation of the company’s leverage ratio to permit the company to give pro forma effect to material acquisitions and carve out from adjusted total debt some cash amounts primarily designated for use in the Starwood acquisition, as well as up to $500 million, increased from $400 million, of guarantees.

The restated agreement also reduces the aggregate amount of dollar and multicurrency swing loan commitments to $300 million from $400 million.

In addition, the company adjusted the definition of permitted liens to include liens securing up to $750 million of debt, an increase from $500 million previously.

Under the restated facility, borrowings generally bear interest at Libor plus a spread ranging from 90 basis points to 150 bps, based on ratings.

The facility fee, also based on ratings, ranges from 10 bps to 25 bps.

The lodging company is based in Bethesda, Md.

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