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MARRIOTT SETS NEW DISTRIBUTION DATE FOR SPECIAL DIVIDEND SPLITTING COMPANY

 WASHINGTON, Aug. 31 /PRNewswire/ -- Marriott Corporation (NYSE: MHS) said today that its board of directors has voted to set new record and distribution dates of Sept. 30, 1993, and Oct. 8, 1993, respectively, for the company's planned special dividend. Marriott said the respective dates were reset from the original dates of Sept. 1 and Sept. 10, pending receipt of a ruling from the Internal Revenue Service (IRS) that the dividend will be tax-free.
 "We are working with the IRS to complete its review process," said Stephen F. Bollenbach, Marriott executive vice president and chief financial officer, "and we are confident that we will receive a favorable ruling."
 Bollenbach explained that the distribution date will be the end of Marriott's 10th four-week accounting period for fiscal 1993.
 The company said receipt of the IRS ruling will clear the way for its special dividend, under which shareholders of Marriott Corporation will receive one share in Marriott International, Inc., a lodging and services management company, for every share they hold of Marriott Corporation. Host Marriott Corporation, as Marriott Corporation is to be renamed, will own a portfolio of hotels and retirement communities, and will operate airport and tollroad concessions. Both companies will be listed on the New York Stock Exchange.
 Bollenbach cited several milestones reached this week in Marriott Corporation's progress toward the special dividend:
 Yesterday afternoon (Aug. 30), Judge Alexander Harvey of the U.S. District Court for the district of Maryland approved the company's settlement with
bondholders who had sued Marriott in eight class actions. Calling the settlement "fair, reasonable and adequate," Harvey denied objections to the settlement which had been filed by PPM America, Inc. and the State Board of Administration of Florida. Marriott said the settlement disposes of all substantive legal claims challenging the special dividend.
 Also on Aug. 30, Marriott disclosed that an agreement for a $1 billion revolving line of credit for Marriott International had been executed with a group of 20 major banks. Earlier yesterday, Marriott announced that the minimum tender condition had been met in its exchange offer for its outstanding publicly held senior notes and debentures. When consummated, the exchange will extend maturities of Host Marriott's debt and provide that company with greater financial flexibility.
 Tenders of senior notes and debentures may no longer be withdrawn, and consents and releases may no longer be revoked, unless the exchange offer is terminated or expires without being consummated, or has not been consummated prior to Oct. 15, 1993.
 Following today's board meeting, Marriott said it is further extending the expiration date of the bond exchange offer from Sept. 9 to 5 p.m. (EDT) on Oct. 7, 1993. The company said it had received tenders of approximately $1.2 billion in principal amount as of Aug. 27, 1993.
 -0- 8/31/93
 /CONTACT: Robert T. Souers of Marriott Corporation, 301-380-1339/
 (MHS) CO: Marriott Corporation ST: District of Columbia IN: FIN SU: DIV


IH-KD -- DC014 -- 7488 08/31/93 12:11 EDT
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Publication:PR Newswire
Date:Aug 31, 1993
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