Debt

3 Months Ended

Dec. 31, 2025

10. Debt

As of December 31, 2025 and September 30, 2025, we had the following debt obligations:


(in thousands)	December 31, 2025			September 30, 2025
4.000% Senior notes due 2028	$	500,000		$	500,000
Credit facility revolver line(1)(2)		237,500			231,250
Credit facility term loan(1)(2)		462,500			468,750
Total debt		1,200,000			1,200,000
Unamortized debt issuance costs for the senior notes(3)		(2,294	)		(2,566	)
Total debt, net of issuance costs(4)	$	1,197,706		$	1,197,434

(1)

Unamortized debt issuance costs related to the credit facility were $2.7 million included in Other current assets and $3.6 million included in Other assets on the Consolidated Balance Sheet as of December 31, 2025 and $2.7 million included in Other current assets and $3.3 million included in Other assets on the Consolidated Balance Sheet as of September 30, 2025.

(2)

The stated maturity date under the credit facility on which both the revolver line and the term loan will mature and all amounts then outstanding will become due and payable is January 3, 2028. The term loan began amortizing in March 2024, with payments remaining of $18.8 million in 2026, $25.0 million in 2027, and $418.7 million in 2028.

(3)

As of December 31, 2025 and September 30, 2025, all unamortized debt issuance costs for the senior notes were included in Long-term debt on the Consolidated Balance Sheets.

(4)

As of December 31, 2025 and September 30, 2025, $25.0 million of debt associated with the credit facility term loan was classified as short term.

Senior Unsecured Notes

In February 2020, we issued $500 million in aggregate principal amount of 4.0% senior, unsecured long-term debt at par value, due in 2028 (the 2028 notes).

As of December 31, 2025, the total estimated fair value of the 2028 notes was approximately $493.0 million based on quoted prices for the notes on that date.

We were in compliance with all the covenants for our senior notes as of December 31, 2025.

Credit Agreement

Our credit facility consists of (i) a $1.25 billion revolving credit facility, (ii) a $500 million term loan credit facility, and (iii) an incremental facility pursuant to which we may incur additional term loan tranches or increase the revolving credit facility.

As of December 31, 2025, unused commitments under our revolving credit facility were $1,012.5 million and the amount available to borrow was $995.4 million.

As of December 31, 2025, the fair value of our credit facility approximates its book value.

PTC and certain foreign subsidiaries are eligible borrowers under the credit facility. As of December 31, 2025, $46.3 million was borrowed by an eligible foreign subsidiary borrower.

Loans under the credit facility bear interest at variable rates. As of December 31, 2025, the annual rate for borrowings outstanding was 5.2%. A quarterly revolving commitment fee on the undrawn portion of the revolving credit facility is required, ranging from 0.175% to 0.325% per annum, based upon our total leverage ratio.

As of December 31, 2025, we were in compliance with all financial and operating covenants of the credit facility.

Interest

In the three months ended December 31, 2025 and December 31, 2024, we incurred interest expense on our debt of $17.3 million and $22.0 million, respectively. The average interest rate on borrowings outstanding was approximately 4.8% and 4.7% during the three months ended December 31, 2025 and December 31, 2024, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

PTC INC. 10-Q