Note 6—Debt

The Company had outstanding debt as follows:



	September 30, 2018			September 30, 2017
	Principal Amount			Principal Amount			Effective Interest Rate
	(in millions, except percentages)
1.20% Senior Notes due 2017 (the “2017 Notes”)	—			1,750			1.37	%
2.20% Senior Notes due 2020 (the “2020 Notes”)	3,000			3,000			2.30	%
2.15% Senior Notes due September 2022 (the “September 2022 Notes”)	1,000			1,000			2.30	%
2.80% Senior Notes due December 2022 (the “December 2022 Notes”)	2,250			2,250			2.89	%
3.15% Senior Notes due 2025 (the “2025 Notes”)	4,000			4,000			3.26	%
2.75% Senior Notes due 2027 (the “2027 Notes”)	750			750			2.91	%
4.15% Senior Notes due 2035 (the “2035 Notes”)	1,500			1,500			4.23	%
4.30% Senior Notes due 2045 (the “2045 Notes”)	3,500			3,500			4.37	%
3.65% Senior Notes due 2047 (the “2047 Notes”)	750			750			3.73	%
Total debt	$	16,750		$	18,500

Unamortized discounts and debt issuance costs	(120		)	(133		)
Less: current portion of long-term debt	—			(1,749		)
Total long-term debt	$	16,630		$	16,618

Senior Notes

In September 2017, the Company issued fixed-rate senior notes (the September 2022 Notes, 2027 Notes and 2047 Notes, or collectively, the “Notes issued in 2017”) in an aggregate principal amount of $2.5 billion, with maturities ranging between 5 and 30 years. Interest on the Notes issued in 2017 is payable semi-annually on March 15 and September 15 of each year, commencing March 15, 2018. The net aggregate proceeds from the Notes issued in 2017, after deducting discounts and debt issuance costs, were approximately $2.5 billion.

Use of Proceeds from Notes issued in 2017. On September 11, 2017, the Company called for redemption of all of the $1.75 billion principal amount outstanding of the 2017 Notes in accordance with the optional redemption provisions set forth in the governing indenture. Subsequent to fiscal 2017, on October 11, 2017, the redemption date, the Company redeemed all of the $1.75 billion principal amount. The redemption was funded with the proceeds from the Notes issued in 2017.

The indenture governing the Company’s outstanding senior notes, or collectively, the “Notes”, contains customary event of default provisions. The Notes are senior unsecured obligations of the Company, ranking equally and ratably among themselves and with the Company’s existing and future unsecured and unsubordinated debt. The Notes are not secured by any assets of the Company and are not guaranteed by any of the Company’s subsidiaries. The Company was in compliance with all related covenants as of September 30, 2018. Each series of Notes may be redeemed as a whole or in part at the Company’s option at any time at specified redemption prices.

The Company recognized related interest expense of $550 million and $505 million in fiscal 2018 and fiscal 2017, respectively, as non-operating expense.

At September 30, 2018, future principal payments on the Company’s outstanding debt are as follows:



Fiscal year ending September 30,	2019		2020		2021		2022		2023		Thereafter		Total
	(in millions)
Future principal payments	$	—	$	—	$	3,000	$	1,000	$	2,250	$	10,500	$	16,750

Commercial Paper Program

Visa maintains a commercial paper program to support its working capital requirements and for other general corporate purposes. Under the program, the Company is authorized to issue up to $3.0 billion in outstanding notes, with maturities up to 397 days from the date of issuance. The Company had no outstanding obligations under the program as of September 30, 2018 and 2017.

Credit Facility

The Company is a party to a credit agreement for a 5-year, unsecured $4.0 billion revolving credit facility (the “Credit Facility”) which expires on January 27, 2022. Borrowings under the Credit Facility are available for general corporate purposes. Interest on borrowings under the Credit Facility would be charged at the London Interbank Offered Rate (LIBOR) or an alternative base rate, in each case plus applicable margins that fluctuate based on the applicable rating of senior unsecured long-term securities of the Company. The Company has agreed to pay a commitment fee which will fluctuate based on such applicable rating of the Company. The Company had no amounts outstanding under the Credit Facility as of September 30, 2018 and 2017.