Debt

6 Months Ended

Mar. 31, 2025

DEBT

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


(In millions)	March 31 2025		September 30 2024
2031 Notes	$	535.0	$	535.0

Term Loan A	427.5		439.4
Revolver (a)	120.0		125.0



Debt issuance costs and discounts	(6.8)		(5.6)
Total debt	1,075.7		1,093.8

Current portion of long-term debt	23.8		23.8
Long-term debt	$	1,051.9	$	1,070.0

(a)As of March 31, 2025, the total borrowing capacity remaining under the $475.0 million revolving credit facility was $351.5 million due to a reduction of $120.0 million from borrowings and $3.5 million for letters of credit outstanding.

Covenants and guarantees

The Company guaranteed future payments related to certain leases assigned in connection with refranchising retail stores and selling the Global Products business. Valvoline is obligated to perform if the buyers of the divested businesses default on the leases, which have remaining terms ranging from nine months to 15 years. The undiscounted maximum potential future payments under the lease guarantees were $67.8 million as of March 31, 2025. In addition, the Company guarantees certain outstanding franchisee debt obligations that have remaining terms ranging from two to five years and total $12.4 million as of March 31, 2025. The Company has not recorded a liability for these guarantees as the likelihood of making future payments is not considered probable.

As of March 31, 2025, Valvoline was in compliance with all covenants under its long-term borrowings.

- 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

VALVOLINE INC 10-Q