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DEBT
 3 Months Ended
Dec. 30, 2023
Debt Disclosure [Abstract]  
DEBT DEBT
The Company’s debt consists of the following (in millions):
December 30, 2023
Gross AmountDebt Issuance CostsOriginal Issue (Discount) or PremiumNet Amount
Short-term borrowings—trade receivable securitization facility$450 $(1)$— $449 
Term loans$7,233 $(29)$(47)$7,157 
6.25% secured notes due 2026 (“2026 Secured Notes”)
4,400 (23)2 4,379 
7.50% senior subordinated notes due 2027 (“7.50% 2027 Notes”)
550 (2)— 548 
5.50% senior subordinated notes due 2027 (“5.50% 2027 Notes”)
2,650 (12)— 2,638 
6.75% secured notes due 2028 (“2028 Secured Notes”)
2,100 (18)(9)2,073 
4.625% senior subordinated notes due 2029 (“4.625% 2029 Notes”)
1,200 (7)— 1,193 
4.875% senior subordinated notes due 2029 (“4.875% 2029 Notes”)
750 (5)— 745 
6.875% secured notes due 2030 (“2030 Secured Notes”)
1,450 (14)— 1,436 
7.125% secured notes due 2031 (“2031 Secured Notes”)
1,000 (10)(7)983 
Government refundable advances21 — — 21 
Finance lease obligations254 — — 254 
21,608 (120)(61)21,427 
Less: current portion81 — — 81 
Long-term debt$21,527 $(120)$(61)$21,346 

September 30, 2023
Gross AmountDebt Issuance CostsOriginal Issue (Discount) or PremiumNet Amount
Short-term borrowings—trade receivable securitization facility$350 $(1)$— $349 
Term loans$6,249 $(22)$(48)$6,179 
2026 Secured Notes4,400 (25)2 4,377 
7.50% 2027 Notes
550 (2)— 548 
5.50% 2027 Notes
2,650 (12)— 2,638 
2028 Secured Notes2,100 (19)(10)2,071 
4.625% 2029 Notes
1,200 (7)— 1,193 
4.875% 2029 Notes
750 (5)— 745 
2030 Secured Notes1,450 (14)— 1,436 
Government refundable advances21 — — 21 
Finance lease obligations193 — — 193 
19,563 (106)(56)19,401 
Less: current portion71 — — 71 
Long-term debt$19,492 $(106)$(56)$19,330 
Amendment No. 13 and Incremental Term Loan Assumption Agreement – On November 28, 2023, the Company entered into Amendment No. 13 and Incremental Term Loan Assumption Agreement (herein, “Amendment No. 13”) to the Second Amended and Restated Credit Agreement dated as of June 4, 2014 (the “Credit Agreement”). Under the terms of Amendment No. 13, the Company, among other things, issued $1,000 million in Tranche J term loans maturing February 28, 2031. The Tranche J term loans bear interest at a rate of adjusted Term Secured Overnight Financing Rate (“Term SOFR”) plus an applicable margin of 3.25%. The Tranche J term loans were issued at a discount of 0.25%, or approximately $3 million. The Tranche J term loans were fully drawn on November 28, 2023 and the other terms and conditions that apply to the Tranche J term loans are substantially the same as the terms and conditions that apply to the term loans immediately prior to Amendment No. 13. Principal payments commence on March 31, 2024, in which $3 million will be paid on a quarterly basis up to the maturity date.
The Company capitalized $10 million in debt issuance costs associated with the Tranche J term loans during the thirteen week period ended December 30, 2023.
Issuance of $1,000 million Senior Secured Notes due 2031 – On November 28, 2023, the Company entered into a purchase agreement in connection with a private offering of $1,000 million in aggregate principal amount of 7.125% senior secured notes due 2031 (the “2031 Secured Notes”) at an issue price of 99.25% of the principal amount, which represents an approximately $8 million discount. The 2031 Secured Notes were issued pursuant to an indenture, dated as of November 28, 2023, amongst TransDigm Inc., as issuer, TransDigm Group and the other subsidiaries of TransDigm Inc. named therein, as guarantors. The 2031 Secured Notes are guaranteed, on a senior secured basis, by TransDigm Group and each of TransDigm Inc.’s direct and indirect restricted subsidiaries that is a borrower or guarantor under TransDigm’s senior secured credit facilities or that issues or guarantees any capital markets indebtedness of TransDigm or any of the guarantors in an aggregate principal amount of at least $200 million. The 2031 Secured Notes and guarantees rank equally in right of payment with all of TransDigm’s and the guarantors’ existing and future senior indebtedness, senior in right of payment to any of TransDigm’s and the guarantors’ existing and future indebtedness that is, by its terms, expressly subordinated in right of payment to the 2031 Secured Notes and guarantees, and structurally subordinated to all of the liabilities of TransDigm’s non-guarantor subsidiaries.
The 2031 Secured Notes bear interest at a rate of 7.125% per annum, which accrues from November 28, 2023 and is payable in arrears on June 1 and December 1 of each year, commencing on June 1, 2024. The 2031 Secured Notes mature on December 1, 2031, unless earlier redeemed or repurchased, and are subject to the terms and conditions set forth in the indenture.
The Company capitalized $10 million in debt issuance costs associated with the 2031 Secured Notes during the thirteen week period ended December 30, 2023.
Trade Receivable Securitization Facility – The Company’s trade receivable securitization facility (the “Securitization Facility”) effectively increases the Company’s borrowing capacity depending on the amount of the domestic operations’ trade accounts receivable. The Securitization Facility includes the right for the Company to exercise annual one year extensions as long as there have been no termination events as defined by the agreement. The Company uses the proceeds from the Securitization Facility as an alternative to other forms of debt, effectively reducing borrowing costs.
On July 25, 2023, the Company amended the Securitization Facility to, among other things, increase the borrowing capacity from $350 million to $450 million and extend the maturity date to July 25, 2024. During the first quarter of fiscal 2024, the Company drew the remaining $100 million available under the Securitization Facility. As of December 30, 2023, the Company has borrowed $450 million under the Securitization Facility, which is fully drawn, and bears interest at a rate of 1.6% plus Term SOFR. At December 30, 2023, the applicable interest rate was 6.99%. The Securitization Facility is collateralized by substantially all of the Company’s domestic operations’ trade accounts receivable.
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 based on year-over-year commercial aviation revenue growth for certain product lines at CMC Electronics, which is a wholly-owned subsidiary of TransDigm. As of December 30, 2023 and September 30, 2023, the outstanding balance of these advances was $21 million.
Obligations under Finance Leases – The Company leases certain buildings and equipment under finance leases. The present value of the minimum finance lease payments, net of the current portion, represents a balance of $254 million and $193 million at December 30, 2023 and September 30, 2023, respectively. The increase in the current fiscal year is attributable to certain new leases of facilities and amendments to previous agreements qualifying as lease modifications resulting in a change in classification from an operating lease to a finance lease. Refer to Note 13, “Leases,” for further disclosure of the Company's lease obligations.