v3.25.2
Debt
 9 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt DEBT
The following table summarizes Valvoline’s total debt as of:

(In millions)June 30
2025
September 30
2024
2031 Notes$535.0 $535.0 
Term Loan A
421.6 439.4 
Revolver (a)
130.0 125.0 
Debt issuance costs and discounts(6.9)(5.6)
Total debt1,079.7 1,093.8 
Current portion of long-term debt23.8 23.8 
Long-term debt$1,055.9 $1,070.0 
 
(a)As of June 30, 2025, the total borrowing capacity remaining under the $475.0 million revolving credit facility was $341.5 million due to a reduction of $130.0 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 six months to 15 years. The undiscounted maximum potential future payments under the lease guarantees were $65.8 million as of June 30, 2025. In addition, the Company guarantees certain outstanding franchisee debt obligations that have remaining terms ranging from one to five years and total $12.1 million as of June 30, 2025. The Company has not recorded a liability for these guarantees as the likelihood of making future payments is not considered probable.

As of June 30, 2025, Valvoline was in compliance with all covenants under its long-term borrowings.