Marriott raises $1.25B in two-part debt offering, locks in 10-year financing
What's the deal? Marriott InternationalDealroom has a profile for this one. Try Dealroom → has raised $1.25 billion through a two-tranche notes offering, splitting the issuance into $250 million of 4.875% Series NN Notes due 2029 and $1 billion of 5.650% Series YY Notes due 2036. The company entered the underwriting agreement on August 11, 2026, and issued the notes on August 13. Net proceeds come to roughly $1.233 billion after underwriting discounts and expenses.
The details: The $250 million Series NN tranche priced at 100.205% of par and forms a single series with $500 million of existing notes issued in February 2024, bringing that series to $750 million. The $1 billion Series YY tranche priced at 99.325% of par. Both tranches carry Baa2 ratings from MoodyDealroom has a profile for this one. Try Dealroom →'s and BBB from S&P Global RatingsDealroom has a profile for this one. Try Dealroom →.
What's the money for? Marriott plans to use the proceeds for general corporate purposes, which may include working capital, capital expenditures, acquisitions, stock repurchases, or repayment of existing debt. The ten-year tranche locks in fixed-rate financing at 5.650%, adding stability to the company's capital structure.
The fine print: The notes are unsecured and not listed on any exchange. Both series are redeemable at Marriott's option, and holders can demand a 101% repurchase upon a change of control paired with a below-investment-grade rating event.
The signal: At $1.25 billion, the raise ranks in the top 10% of all post-IPO debt rounds in the United States, based on a sample of 4,823 deals. For an investment-grade issuer like Marriott, the move locks in fixed rates now and preserves flexibility to buy back stock or retire higher-cost debt later.
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Image credit: Dennis Wong
