Marriott International, Inc.the American multinational diversified hospitality company announced on 5th May that it has signed amendments to its existing co-brand credit card agreements with JPMorgan Chase & Co.(Chase) and American Express. These amendments will give the company with USD 920 million of cash, additionally enhancing its liquidity, with USD 570 million coming from Chase and USD 350 million coming from American Express.
The USD 570 million from Chase includes USD 500 million of prepayment of certain future revenues and USD 70 million from the early payment of a previously committed signing bonus under the co-brand credit card agreement. The USD 350 million from American Express is for the pre-purchase of Marriott Bonvoy points and other consideration. In each case the cash will be recorded by Marriott as deferred revenue and will be available for general corporate purposes.
Both of these amendments include extensions of the existing co-brand credit card agreements, so that they continue to be co-terminus.
The company has also terminated the USD 1.5 billion 364-day revolving credit facility commitment, it announced on April 14, 2020, the capacity of which was substantially reduced as a result of the Series EE senior notes offering the company completed on April 16, 2020.
Marriott International, Inc., USA encompasses a portfolio of more than 7,300 properties under 30 leading brands across 134 countries and territories.
