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)

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