Debt

9 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

DEBT

The following table summarizes Valvoline’s total debt as of:

(In millions)	June 30 2022		September 30  2021
2031 Notes	$	535	$	535
2030 Notes	600		600
Term Loan	474		475
Revolver (a)	—		—
Trade Receivables Facility (b)	68		59
China Construction Facility (c)	36		39
China Working Capital Facilities (d)	—		—
Debt issuance costs and discounts	(13)		(14)
Total debt	1,700		1,694
Current portion of long-term debt	61		17
Long-term debt	$	1,639	$	1,677

(a)As of June 30, 2022, the total borrowing capacity remaining under the $475 million revolving credit facility was $471 million due to a reduction of $4 million for letters of credit outstanding.

(b)The Trade Receivables Facility had $107 million of borrowing capacity remaining and the wholly-owned financing subsidiary owned $383 million of outstanding accounts receivable as of June 30, 2022.

(c)The remaining borrowing capacity under the China Construction Facility was approximately $6 million as of June 30, 2022.

(d)Includes two credit facilities, a committed revolving credit facility for $12 million that expires in the first quarter of fiscal 2023 and bears interest at the local prime rate, and an uncommitted credit facility with a revolving line of credit of up to $22 million that expires in the third quarter of fiscal 2024 and bears interest at the local prime rate plus margin (collectively, the “China Working Capital Facilities”). The China Working Capital Facilities have no outstanding borrowings as of June 30, 2022.

As of June 30, 2022, Valvoline was in compliance with all covenants under its long-term borrowings.