Terms Agreement, dated September 8, 2021, among Marriott International, Inc. and the Underwriters named therein
Exhibit 1.1
Terms Agreement
BofA Securities, Inc.
Deutsche Bank Securities Inc.
Goldman Sachs & Co. LLC
As Representatives of the
several Underwriters listed in Schedule I hereto
c/o BofA Securities, Inc.
One Bryant Park
New York, New York 10036
c/o Deutsche Bank Securities Inc.
60 Wall Street
New York, New York 10005
and
c/o Goldman Sachs & Co. LLC
200 West Street
New York, New York 10282
September 8, 2021
Dear Ladies and Gentlemen:
Marriott International, Inc., a Delaware corporation (the “Company”), proposes, subject to the terms and conditions stated herein and in the Underwriting Agreement General Terms and Provisions (the “Terms and Provisions”) attached hereto, to issue and sell to each of the Underwriters named in Schedule I hereto (the “Underwriters”), and each of the Underwriters agrees, severally and not jointly, to purchase from the Company, at the time and place and at the purchase price to the Underwriters set forth in Schedule II hereto, the principal amount of Securities set forth opposite the name of such Underwriter in Schedule I hereto. Each of the provisions of the Terms and Provisions is incorporated herein by reference in its entirety, and shall be deemed to be a part of this Agreement to the same extent as if such provisions had been set forth in full herein; and each of the representations and warranties set forth therein shall be deemed to have been made at and as of the date of this Terms Agreement. Each reference to the Representatives herein and in the provisions of the Terms and Provisions so incorporated by reference shall be deemed to refer to you. Certain terms defined in the Terms and Provisions and the addresses of the Representatives referred to in Section 11 of the Terms and Provisions are set forth in Schedule II hereto. For the avoidance of doubt, the Company and the Underwriters acknowledge and agree that the phrase “since the date of this Agreement” in Section 6(j) of the Terms and Provisions shall refer to the date of this Terms Agreement.
The Representatives hereby confirm and the Company acknowledges that the list of the Underwriters and their respective participation in the sale of the Securities and the statements with respect to the public offering of the Securities by the Underwriters set forth (i) in the last paragraph of the cover page regarding delivery of the Securities and (ii) in the fifth paragraph, the first sentence of the ninth paragraph, and the thirty-second and thirty-third paragraphs under the heading “Underwriting” in the Company’s Prospectus Supplement dated September 8, 2021, to the Company’s Prospectus dated February 18, 2021, relating to the Securities (the “Prospectus Supplement”) constitute the only information concerning such Underwriters furnished in writing to the Company by or on behalf of the Underwriters specifically for inclusion in the Prospectus Supplement.
All the provisions contained in the Terms and Provisions, a copy of which you have previously received, are herein incorporated by reference in their entirety and shall be deemed to be a part of this Terms Agreement to the same extent as if the Terms and Provisions had been set forth in full herein.
For the purposes of the Terms and Provisions, the “Applicable Time” shall be 3:00 p.m. (Eastern Time) on the date hereof.
2
If the foregoing is in accordance with your understanding, please sign and return to us two counterparts hereof, and upon acceptance hereof by you, on behalf of each of the Underwriters, this letter and such acceptance hereof, including the provisions of the Terms and Provisions incorporated herein by reference, shall constitute a binding agreement between each of the Underwriters and the Company. It is understood that your acceptance of this letter on behalf of each of the Underwriters is or will be pursuant to the authority set forth in a form of Agreement among Underwriters, the form of which shall be submitted to the Company for examination, upon request, but without warranty on the part of the Representatives as to the authority of the signers thereof.
| Very truly yours, | ||
| MARRIOTT INTERNATIONAL, INC. | ||
| By: | /s/ Carolyn B. Handlon | |
| Name: | Carolyn B. Handlon | |
| Title: | Executive Vice President and Global Treasurer | |
[Signature Page to Terms Agreement]
The foregoing Agreement is hereby confirmed and accepted as of the date hereof.
| BOFA SECURITIES, INC. | ||
| By: | /s/ Shawn Cepeda | |
| Name: | Shawn Cepeda | |
| Title: | Managing Director | |
| DEUTSCHE BANK SECURITIES, INC. | ||
| By: | /s/ Kevin Prior | |
| Name: | Kevin Prior | |
| Title: | Director | |
| By: | /s/ John C. McCabe | |
| Name: | John C. McCabe | |
| Title: | Managing Director | |
| GOLDMAN SACHS & CO. LLC | ||
| By: | /s/ Raffael Fiumara | |
| Name: | Raffael Fiumara | |
| Title: | Vice President | |
For themselves and the other several Underwriters named in Schedule I to the foregoing Agreement.
[Signature Page – Terms Agreement]
Schedule I
| Underwriter | Principal Amount of Securities to be Purchased | |||
| BofA Securities, Inc. | $ | 63,350,000 | ||
| Deutsche Bank Securities Inc. | $ | 63,350,000 | ||
| Goldman Sachs & Co. LLC | $ | 63,350,000 | ||
| Citigroup Global Markets Inc. | $ | 38,500,000 | ||
| J.P. Morgan Securities LLC | $ | 38,500,000 | ||
| PNC Capital Markets LLC | $ | 38,500,000 | ||
| Scotia Capital (USA) Inc. | $ | 38,500,000 | ||
| TD Securities (USA) LLC | $ | 38,500,000 | ||
| UniCredit Capital Markets LLC | $ | 38,500,000 | ||
| U.S. Bancorp Investments, Inc. | $ | 38,500,000 | ||
| Wells Fargo Securities, LLC | $ | 38,500,000 | ||
| Fifth Third Securities, Inc. | $ | 24,850,000 | ||
| HSBC Securities (USA) Inc. | $ | 24,850,000 | ||
| ICBC Standard Bank Plc | $ | 24,850,000 | ||
| Truist Securities, Inc. | $ | 24,850,000 | ||
| Siebert Williams Shank & Co., LLC | $ | 24,500,000 | ||
| BNY Mellon Capital Markets, LLC | $ | 17,850,000 | ||
| Capital One Securities, Inc. | $ | 17,850,000 | ||
| Loop Capital Markets LLC | $ | 17,850,000 | ||
| Santander Investment Securities Inc. | $ | 12,250,000 | ||
| Standard Chartered Bank | $ | 12,250,000 | ||
|
|
| |||
| Total | $ | 700,000,000 | ||
|
|
| |||
Schedule II
| Representatives: | BofA Securities, Inc. Deutsche Bank Securities Inc. Goldman Sachs & Co. LLC | |
| Underwriting Agreement: | March 3, 2021 | |
| Registration Statement No.: | 333-253260 | |
| Title of Securities: | 2.750% Series II Notes due 2033 (the “Series II Notes”) | |
| Aggregate principal amount: | $700,000,000 | |
| Price to Public: | 99.907% of the principal amount of the Series II Notes, plus accrued interest, if any, from September 22, 2021 | |
| Underwriting Discount: | 0.675% | |
| Indenture: | Indenture dated as of November 16, 1998 between Marriott International, Inc. and The Bank of New York Mellon, as successor to JPMorgan Chase Bank, N.A., formerly known as The Chase Manhattan Bank, as trustee | |
| Date of Maturity: | October 15, 2033 | |
| Interest Rate: | 2.750% per annum, payable semiannually | |
| Interest Rate Adjustment | The interest rate payable on the Series II Notes will be subject to adjustment based on certain rating events as described under the caption “Description of the Notes—Terms—Interest Rate Adjustment of the Notes Based on Certain Rating Events” in the Preliminary Prospectus Supplement dated September 8, 2021 | |
| Interest Payment Dates: | April 15 and October 15, commencing on April 15, 2022 | |
| CUSIP / ISIN: | 571903 BH5 / US571903BH57 | |
| Optional Redemption Provisions: | The Series II Notes may be redeemed in whole or in part at any time prior to July 15, 2033 (three months prior to the maturity date of the notes), at the issuer’s option, at a redemption price equal to the greater of (1) 100% of the principal amount of the Series II Notes being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest (not including accrued interest as of the redemption date) on the Series II Notes to be redeemed, discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) through to July 15, 2033 at the Treasury Rate (the yield to maturity of the United States Treasury security, selected by a primary U.S. government securities dealer, having a maturity comparable to the remaining term of the Series II Notes being redeemed) plus 25 basis points, plus accrued and unpaid interest on the Series II Notes to the redemption date.
The Series II Notes may be redeemed in whole or in part from time to time on or after July 15, 2033 (three months prior to the maturity date of the notes), at the issuer’s option, at a redemption price equal to 100% of the principal amount of the notes being redeemed, plus any accrued and unpaid interest on the notes being redeemed to the redemption date. | |
| Purchase of Securities Upon a Change in Control Repurchase Event: | If a change of control repurchase event occurs, the issuer will be required, subject to certain conditions, to make an offer to repurchase the Series II Notes at a price equal to 101% of the principal amount of the Series II Notes, plus accrued and unpaid interest to the date of repurchase. “Change of control repurchase event” means the occurrence of both a change of control and a below investment grade rating event. | |
| “Change of control” means the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) becomes the beneficial owner, directly or indirectly, of more than 50% of our voting stock, measured by voting power rather than number of shares. Notwithstanding the foregoing, a transaction effected to create a holding company for us will not be deemed to involve a change of control if: (1) pursuant to such transaction we become a direct or indirect wholly owned subsidiary of such holding company and (2)(A) the direct or indirect holders of the voting stock of such holding company | ||
| immediately following that transaction are substantially the same as the holders of our voting stock immediately prior to that transaction or (B) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the voting stock of such holding company, measured by voting power rather than number of shares. | ||
| “Below investment grade rating event” is defined in the Preliminary Prospectus Supplement dated September 8, 2021. | ||
| Sinking Fund Provisions: | None | |
| Other Provisions: | As specified in the Preliminary Prospectus Supplement dated September 8, 2021 relating to the Securities. | |
| Securities Exchange: | The Series II Notes will not be listed on any exchange. | |
| Ratings: | Baa3 by Moody’s Investors Service, Inc. BBB- by S&P Global Ratings | |
| Closing Date and Delivery Date: | September 22, 2021 | |
| Closing Location: | Simpson Thacher & Bartlett LLP 425 Lexington Ave. New York, New York 10017 | |
| Address for Notices to Underwriters: | BofA Securities, Inc. 1540 Broadway NY8-540-26-01 New York, New York 10036 Facsimile: (646) 855-5958 Attention: High Grade Transaction Management / Legal Email: ***@***
Deutsche Bank Securities Inc. 60 Wall Street New York, New York 10005 Facsimile: (212) 797-4561 Attention: Debt Capital Markets Syndicate | |
| Goldman Sachs & Co. LLC 200 West Street New York, New York 10282 Facsimile: (212) 902-9316 Attention: Registration Department |
ANNEX A
Permitted Free Writing Prospectus
Final Term Sheet dated September 8, 2021
ANNEX B
Issuer Free Writing Prospectus Filed Pursuant to Rule 433
supplementing the
Preliminary Prospectus Supplement dated September 8, 2021
Registration No. 333-253260
MARRIOTT INTERNATIONAL, INC.
2.750% Series II Notes due 2033
PRICING TERM SHEET
Dated: September 8, 2021
| Issuer: | Marriott International, Inc. | |
| Anticipated Ratings (Moody’s / S&P)*: | Baa3 / BBB- | |
| Security: | 2.750% Series II Notes due 2033 (the “Series II Notes”) | |
| Aggregate Principal Amount: | $700,000,000 | |
| Maturity Date: | October 15, 2033 | |
| Coupon: | 2.750% | |
| Interest Payment Dates: | April 15 and October 15, commencing on April 15, 2022 | |
| Interest Rate Adjustment: | The interest rate payable on the Series II Notes will be subject to adjustment based on certain rating events as described under the caption “Description of the Notes—Terms—Interest Rate Adjustment of the Notes Based on Certain Rating Events” in the Preliminary Prospectus Supplement dated September 8, 2021. | |
| Day Count Convention: | 360-day year consisting of twelve 30-day months | |
| Price to Public: | 99.907% of the principal amount | |
| Benchmark Treasury: | 1.250% due August 15, 2031 | |
| Benchmark Treasury Price / Yield: | 99-08+ / 1.329% | |
| Spread to Benchmark Treasury: | +143 basis points | |
| Yield to Maturity: | 2.759% | |
| Optional Redemption Provisions: | The Series II Notes may be redeemed in whole or in part at any time prior to July 15, 2033 (three months prior to the maturity date of the notes), at the issuer’s option, at a redemption price equal to the greater of (1) 100% of the principal amount of the Series II Notes being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest (not including accrued interest as of the redemption date) on the Series II Notes to be redeemed, discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) through to July 15, 2033 at the Treasury Rate (the yield to maturity of the United States Treasury security, selected by a primary U.S. government securities dealer, having a maturity comparable to the remaining term of the Series II Notes being redeemed) plus 25 basis points, plus accrued and unpaid interest on the Series II Notes to the redemption date.
The Series II Notes may be redeemed in whole or in part from time to time on or after July 15, 2033 (three months prior to the maturity date of the notes), at the issuer’s option, at a redemption price equal to 100% of the principal amount of the notes being redeemed, plus any accrued and unpaid interest on the notes being redeemed to the redemption date. | |
| Change of Control: | Issuer repurchase offer required following certain changes of control as described in the Preliminary Prospectus Supplement dated September 8, 2021. | |
| Trade Date: | September 8, 2021 | |
2
| Expected Settlement Date: | September 22, 2021 (T+10)
It is expected that delivery of the Series II Notes will be made to investors on or about September 22, 2021, which will be the tenth business day following the date of the prospectus supplement (such settlement being referred to as “T+10”). Under Rule 15c6-1 under the Exchange Act, trades in the secondary market are required to settle in two business days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade the Series II Notes before the second business day prior to September 22, 2021 will be required, by virtue of the fact that the Series II Notes initially settle in T+10, to specify an alternative settlement arrangement at the time of any such trade to prevent a failed settlement. Purchasers who wish to trade Series II Notes prior to their date of delivery hereunder should consult their advisors. | |
| CUSIP / ISIN: | 571903 BH5 / US571903BH57 | |
| Denominations: | $2,000 and integral multiples of $1,000 in excess thereof | |
| Joint Book-Running Managers: | BofA Securities, Inc. Deutsche Bank Securities Inc. Goldman Sachs & Co. LLC Citigroup Global Markets Inc. J.P. Morgan Securities LLC PNC Capital Markets LLC Scotia Capital (USA) Inc. TD Securities (USA) LLC UniCredit Capital Markets LLC U.S. Bancorp Investments, Inc. Wells Fargo Securities, LLC | |
| Senior Co-Managers: | BNY Mellon Capital Markets, LLC Capital One Securities, Inc. Fifth Third Securities, Inc. HSBC Securities (USA) Inc. ICBC Standard Bank Plc Loop Capital Markets LLC Santander Investment Securities Inc. Siebert Williams Shank & Co., LLC Standard Chartered Bank Truist Securities, Inc. | |
| * | Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. |
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the
3
SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling BofA Securities, Inc. at ###-###-####, Deutsche Bank Securities Inc. at ###-###-#### or Goldman Sachs & Co. LLC at ###-###-####.
4
