Debt

6 Months Ended

Apr. 30, 2020

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)	April 30, 2020		October 31, 2019
Manufacturing operations
Senior Secured Term Loan Credit Agreement, due 2025, net of unamortized discount of $5 and $6, respectively, and unamortized debt issuance costs of $9 and $10, respectively	$	1,550	$	1,556
9.5% Senior Secured Notes, due 2025, net of unamortized debt issuance costs of $12	588		—
6.625% Senior Notes, due 2026, net of unamortized debt issuance costs of $14 and $15, respectively	1,086		1,085
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	51		60
Other	40		11
Total Manufacturing operations debt	3,535		2,932
Less: Current portion	66		32
Net long-term Manufacturing operations debt	$	3,469	$	2,900



(in millions)	April 30, 2020		October 31, 2019
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 $2 and $4, respectively	$	788	$	991
Bank credit facilities, at fixed and variable rates, due dates from 2020 through 2025, net of unamortized debt issuance costs of $1 at both dates	991		1,059
Commercial paper, at variable rates, program matures in 2022	—		84
Borrowings secured by operating and finance leases, at various rates, due serially through 2024	115		122
Total Financial Services operations debt	1,894		2,256
Less: Current portion	504		839
Net long-term Financial Services operations debt	$	1,390	$	1,417

Manufacturing Operations

9.5% Senior Secured Notes, due 2025

On April 27, 2020, we issued $600 million of 9.5% senior secured notes, due 2025 ("9.5% Senior Secured Notes"). Interest is payable on May 1 and November 1 of each year beginning on November 1, 2020 until the maturity date of May 1, 2025. The proceeds from the 9.5% Senior Secured Notes are being used for general corporate purposes in addition to certain transaction fees and expenses incurred in connection with the new 9.5% Senior Secured Notes. Debt issuance costs of $12 million were recorded as a direct deduction from the carrying amount and will be amortized through Interest expense over the life. The 9.5% Senior Secured Notes are subject to specific redemption pricing, restrictive payments, and change of control provisions.

Financial Services Operations

Asset-backed Debt

In January 2020, the Truck Retail Accounts Corporation (“TRAC”) funding facility was renewed and extended to June 2021, with a capacity range of $100 million to $200 million.

In May 2020, the maturity date of our variable funding notes ("VFN") facility was extended to May 2021, and the maximum capacity remained $350 million.