AFM373 Lecture Notes - Lecture 9: John And Richard Marriot, Project Chariot, High-Yield Debt

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM373
• Professor: Alan Douglas

Document Summary

: hotel industry, food, theme parks at one point. : new financial officer, used to be treasurer, reputation for innovative financial structures in hotel industry, helped donald trump with his debt. : service businesses would be split off from its property holdings and debt. : existing shareholders get stock to match each share they own in the old one. Mii (j. w marriott jr. ) and hmc (richard marriot) have separate management & separate bod (both brothers on both boards) Mii would have contract with hmc (right to lease and operate senior living facilities owned by hmc) Mii has right to buy 20% of hmc"s voting stock at fmv if change in control of hmc and mii can veto if hmc tries to sell toll road and airport concessions. Shareholders: one share (new comp) for every share they own of the old company, special tax free dividend financial engineering to increase share price.