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DEBT
 3 Months Ended
Dec. 28, 2019
Debt Disclosure [Abstract]  
DEBT DEBT
The Company’s debt consists of the following (in millions):
 
December 28, 2019
 
Gross Amount
 
Debt Issuance Costs
 
Original Issue Discount or Premium
 
Net Amount
Short-term borrowings—trade receivable securitization facility
$
350

 
$
—

 
$
—

 
$
350

Term loans
$
7,524

 
$
(56
)
 
$
(16
)
 
$
7,452

6.50% senior subordinated notes due 2024 (2024 Notes)
1,200

 
(5
)
 
—

 
1,195

6.50% senior subordinated notes due 2025 (2025 Notes)
750

 
(3
)
 
3

 
750

6.375% senior subordinated notes due 2026 (6.375% 2026 Notes)
950

 
(7
)
 
—

 
943

6.875% senior subordinated notes due 2026 (6.875% 2026 Notes)
500

 
(5
)
 
(3
)
 
492

6.25% secured notes due 2026 (2026 Secured Notes)
4,000

 
(57
)
 
2

 
3,945

7.50% senior subordinated notes due 2027 (7.50% 2027 Notes)
550

 
(5
)
 
—

 
545

5.50% senior subordinated notes due 2027 (5.50% 2027 notes
2,650

 
(23
)
 
—

 
2,627

Government refundable advances
31

 
—

 
—

 
31

Finance lease obligations
52

 
—

 
—

 
52

 
18,207

 
(161
)
 
(14
)
 
18,032

Less current portion
81

 
(1
)
 
—

 
80

Long-term debt
$
18,126

 
$
(160
)
 
$
(14
)
 
$
17,952


 
September 30, 2019
 
Gross Amount
 
Debt Issuance Costs
 
Original Issue Discount or Premium
 
Net Amount
Short-term borrowings—trade receivable securitization facility
$
350

 
$
—

 
$
—

 
$
350

Term loans
$
7,524

 
$
(58
)
 
$
(17
)
 
$
7,449

6.00% 2022 Notes
1,150

 
(4
)
 
—

 
1,146

6.50% 2024 Notes
1,200

 
(6
)
 
—

 
1,194

6.50% 2025 Notes
750

 
(3
)
 
3

 
750

6.375% 2026 Notes
950

 
(7
)
 
—

 
943

6.875% 2026 Notes
500

 
(6
)
 
(3
)
 
491

6.25% 2026 Secured Notes
4,000

 
(60
)
 
2

 
3,942

7.50% 2027 Notes
550

 
(5
)
 
—

 
545

Government refundable advances
39

 
—

 
—

 
39

Finance lease obligations
50

 
—

 
—

 
50

 
16,713

 
(149
)
 
(15
)
 
16,549

Less current portion
81

 
(1
)
 
—

 
80

Long-term debt
$
16,632

 
$
(148
)
 
$
(15
)
 
$
16,469


Accrued interest, which is classified as a component of accrued liabilities, was $181.0 million and $92.6 million as of December 28, 2019 and September 30, 2019, respectively.
Issuance of Senior Subordinated Notes due 2027 – On October 29, 2019, the Company entered into a purchase agreement in connection with a private offering of $2,650 million in new 5.50% senior subordinated notes due 2027 (herein the "5.50% 2027 Notes"). The 5.50% 2027 Notes were issued pursuant to an indenture, dated as of November 13, 2019, among TransDigm, as issuer, TransDigm Group, TransDigm UK and the other subsidiaries of TransDigm named therein, as guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee.
The 5.50% 2027 Notes bear interest at the rate of 5.50% per annum, which accrues from November 13, 2019 and is payable in arrears on May 15th and November 15th of each year, commencing on May 15, 2020. The 5.50% 2027 Notes mature on November 15, 2027, unless earlier redeemed or repurchased, and are subject to the terms and conditions set forth in the indenture.
The Company capitalized $23.6 million and expensed $1.1 million of refinancing costs representing debt issuance costs associated with the 5.50% 2027 Notes during the thirteen week period ended December 28, 2019.
Repurchase of Senior Subordinated Notes due 2022 – On October 29, 2019, the Company announced a cash tender offer for any and all of its 2022 Notes outstanding. On November 26, 2019, the Company redeemed the principal amount of $1,150 million, plus accrued interest of approximately $25.5 million and early redemption premium of $17.3 million.
The Company wrote off $3.8 million in unamortized debt issuance costs during the thirteen week period ended December 28, 2019 in conjunction with the redemption of the 2022 Notes.
Government Refundable Advances - Government refundable advances consist of payments received from the Canadian government to assist in research and development related to commercial aviation. The requirement to repay this advance is solely based on year-over-year commercial aviation revenue growth at CMC Electronics, which is a subsidiary of TransDigm. These obligations were assumed in connection with the Esterline acquisition and the balance was $31.3 million at December 28, 2019 and $39.2 million at September 30, 2019. The decrease in the obligation is attributable to a purchase accounting adjustment recorded in the first quarter of fiscal 2020 as permissible within the one year measurement period related to the acquisition of Esterline.
Obligations under Finance Leases - The Company leases certain buildings and equipment under finance leases. These obligations were assumed in connection with the Esterline acquisition and the present value of the minimum capital lease payments, net of the current portion, represents a balance of $51.9 million at December 28, 2019 and $49.9 million at September 30, 2019. Refer to Note 16, "Leases," for further disclosure on the Company's finance lease obligations.