Debt

6 Months Ended

Mar. 28, 2020

DEBT

The major components of debt are as follows (in millions):



	March 28, 2020			September 28, 2019
Revolving credit facility	$	200		$	70
Commercial paper	1,000			1,000
Senior notes:
Notes due June 2020 (2.13% at 3/28/2020)	350			350
Notes due August 2020 (2.15% at 3/28/2020)	400			400
4.10% Notes due September 2020	279			280
2.25% Notes due August 2021	500			500
4.50% Senior notes due June 2022	1,000			1,000
3.90% Senior notes due September 2023	400			400
3.95% Notes due August 2024	1,250			1,250
4.00% Notes due March 2026 ("2026 Notes")	800			800
3.55% Notes due June 2027	1,350			1,350
7.00% Notes due January 2028	18			18
4.35% Notes due March 2029 ("2029 Notes")	1,000			1,000
6.13% Notes due November 2032	160			161
4.88% Notes due August 2034	500			500
5.15% Notes due August 2044	500			500
4.55% Notes due June 2047	750			750
5.10% Notes due September 2048 ("2048 Notes")	1,500			1,500
Discount on senior notes	(46		)	(48		)
Term loan:
Term loan facility due March 2022 (2.5% at 3/28/2020)	—			—
Other	270			216
Unamortized debt issuance costs	(61		)	(65		)
Total debt	12,120			11,932
Less current debt	1,142			2,102
Total long-term debt	$	10,978		$	9,830

Term Loan Facility due March 2022

On March 27, 2020, we executed a new $1.5 billion term loan facility to refinance our short-term promissory notes (“commercial paper program”), repay outstanding balances under our revolving credit facility and for general liquidity purposes. On April 1, 2020, we borrowed the full $1.5 billion available under the term loan facility and used it to repay the $1.0 billion of outstanding commercial paper obligations and to repay the $200 million outstanding balance under our revolving credit facility. Accordingly, given the two-year term of the new term loan facility, we reclassified the $1.0 billion of commercial paper outstanding as of March 28, 2020 to long-term debt. The term loan facility expires on March 27, 2022 and is subject to prepayment under certain conditions. Additionally, the term loan facility contains covenants that are similar to those contained in the revolving credit facility.

Revolving Credit Facility and Letters of Credit

We have a $1.75 billion revolving credit facility that supports short-term funding needs and serves as a backstop to our commercial paper program which will mature and the commitments thereunder will terminate in March 2023. Amounts available for borrowing under this facility totaled $1.55 billion at March 28, 2020, before deducting amounts to backstop our commercial paper program. At March 28, 2020, we had $200 million in borrowings and no outstanding letters of credit issued under this facility. At March 28, 2020, we had $119 million of bilateral letters of credit issued separately from the revolving credit facility, none of which were drawn upon. Our letters of credit are issued primarily in support of leasing and workers’ compensation insurance programs and other legal obligations. In the future, if any of our subsidiaries shall guarantee any of our material indebtedness, such subsidiary shall be required to guarantee the indebtedness, obligations and liabilities under this facility.

Commercial Paper Program

We have a commercial paper program under which we may issue unsecured short-term promissory notes up to an aggregate maximum principal amount of $1 billion as of March 28, 2020. As of March 28, 2020, we had $1 billion of commercial paper outstanding at a weighted average interest rate of 2.07% with maturities of less than 15 days. On April 1, 2020, we repaid the outstanding balance of the commercial paper using proceeds from the Term Loan Facility due March 2022. Our ability to access commercial paper in the future may be limited or its costs increased, due to market conditions which have been impacted in part by COVID-19.

Debt Covenants

Our revolving credit and term loan facilities contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens and encumbrances; incur debt; merge, dissolve, liquidate or consolidate; make acquisitions and investments; dispose of or transfer assets; change the nature of our business; engage in certain transactions with affiliates; and enter into hedging transactions, in each case, subject to certain qualifications and exceptions. In addition, we are required to maintain minimum interest expense coverage and maximum debt-to-capitalization ratios.

Our senior notes also contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens; engage in certain sale/leaseback transactions; and engage in certain consolidations, mergers and sales of assets.

We were in compliance with all debt covenants at March 28, 2020.