Marriott Gets $920 Million in Amended Pacts With JPMorgan, American Express
May 05 2020 - 7:26AM
Dow Jones News
By Colin Kellaher
Marriott International Inc. Tuesday said it will receive a $920
million cash infusion under amended co-brand credit- card
agreements with JPMorgan Chase & Co. and American Express
Co.
The Bethesda, Md., hotel operator said it will receive $570
million from JPMorgan Chase, including $500 million of prepayment
of certain future revenue and $70 million from the early payment of
a signing bonus under the co-brand agreement.
Marriott said it will receive $350 million from American Express
for the pre-purchase of Marriott Bonvoy points and other
consideration.
Marriott said the cash, which it will record as deferred
revenue, bolsters its liquidity position and will be available for
general corporate purposes.
The world's largest hotel company has been beset by plunging
occupancy rates amid the worldwide coronavirus pandemic.
Marriott also said it terminated the $1.5 billion 364-day
revolving credit facility commitment it announced last month after
the facility's capacity was substantially reduced due to a
subsequent $1.6 billion senior notes offering.
Shares of Marriott, which closed Monday at $82.58, rose 3.4% in
light premarket trading Tuesday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
May 05, 2020 08:11 ET (12:11 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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