Debt

9 Months Ended

Jul. 31, 2019

The following tables present the components of Notes payable and current maturities of long-term debt and Long-term debt in our Consolidated Balance Sheets:



(in millions)	July 31, 2019		October 31, 2018
Manufacturing operations
Senior Secured Term Loan Credit Agreement, due 2025, net of unamortized discount of $6 and $7, respectively, and unamortized debt issuance costs of $10 and $11, respectively	$	1,560	$	1,570
6.625% Senior Notes, due 2026, net of unamortized debt issuance costs of $15 and $17, respectively	1,085		1,083
4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $5 and unamortized debt issuance costs of $1	—		405
Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040, net of unamortized debt issuance costs of $5 at both dates	220		220
Financed lease obligations	54		122
Other	10		26
Total Manufacturing operations debt	2,929		3,426
Less: Current portion	30		461
Net long-term Manufacturing operations debt	$	2,899	$	2,965



(in millions)	July 31, 2019		October 31, 2018
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2023, net of unamortized debt issuance costs of $5 and $4, respectively	$	1,102	$	948
Senior secured NFC Term Loan, due 2025, net of unamortized discount of $2 and unamortized debt issuance costs of $4	—		394
Bank credit facilities, at fixed and variable rates, due dates from 2019 through 2025, net of unamortized debt issuance costs of zero and $2, respectively	1,000		519
Commercial paper, at variable rates, program matures in 2022	71		75
Borrowings secured by operating and finance leases, at various rates, due serially through 2024	102		105
Total Financial Services operations debt	2,275		2,041
Less: Current portion	646		485
Net long-term Financial Services operations debt	$	1,629	$	1,556

Manufacturing Operations

4.75% Senior Subordinated Convertible Notes

The 4.75% Senior Subordinated Convertible Notes were fully repaid upon maturity in April 2019, and none were converted into our common stock.

Financial Services Operations

Asset-backed Debt

In November 2018, the maturity of our wholesale variable funding notes ("VFN") facility was extended from December 2018 to May 2020. In April 2019, the VFN facility capacity was temporarily increased from $350 million to $550 million until the earlier of June 28, 2019, or the completion of a qualifying wholesale asset-backed term transaction. In June, the capacity decreased from $550 million to $350 million, upon the issuance of $300 million of two-year investor notes by Navistar Financial Securities Corporation secured by assets of the wholesale note owner trust. Proceeds were used, in part, to replace the $250 million of investor notes that matured in June 2019.

In December 2018, the maturity of our Truck Retail Accounts Corporation ("TRAC") funding facility was extended from January 2019 to January 2020. In April 2019, the maximum capacity of the TRAC funding facility was increased from $100 million to $150 million.

NFC Term Loan and Bank Credit Facility

In May 2019, NFC increased the capacity of its revolving bank credit facility from $269 million to $748 million and extended the maturity from September 2021 to May 2024. The additional capacity was used to fully repay the senior secured NFC Term Loan balance of $398 million. The early repayment of the senior secured NFC Term Loan resulted in the write off of unamortized debt issuance costs and discount of $6 million which was recorded in Other expense (income), net in our Consolidated Statements of Operations.