NOTE H – DEBT AND OTHER FINANCING ACTIVITIES

The scheduled aggregate maturities for long-term debt by year (excluding debt issuance costs) are as follows as of June 30, 2026: zero 2026, $4 million in 2027, $571 million in 2028, $97 million in 2029, zero in 2030 and $450 million in 2031.

Credit agreements and refinancing

On May 28, 2026 (the “Closing Date”), Ashland Inc. and its Swiss subsidiary, Ashland Industries Europe GmbH ("the Swiss Borrower"), entered into a Second Amended and Restated Credit Agreement (the “2026 Credit Agreement”). The 2026 Credit Agreement provides for a $500 million five-year revolving credit facility (including a $125 million letter of credit sublimit) ("The Revolving Facility"), which may be drawn by Ashland or the Swiss Borrower.

The 2026 Credit Agreement amends and restates the Amended and Restated Credit Agreement dated as of July 22, 2022.

The obligations of the Swiss Borrower under the 2026 Revolving Facility are guaranteed by Ashland. The Revolving Facility is unsecured.

At Ashland’s option, loans issued under the 2026 Credit Agreement will bear interest at (a) in the case of loans denominated in U.S. dollars, either Term Secured Overnight Financing Rate ("SOFR") or an alternate base rate and (b) in the case of loans denominated in Euros, Euro Interbank Offered Rate ("EURIBOR"), in each case plus the applicable interest rate margin. Loans will initially bear interest at Term SOFR or EURIBOR plus 1.375% per annum, in the case of Term SOFR borrowings or EURIBOR borrowings, respectively, or at the alternate base rate plus 0.375%, in the case of alternate base rate borrowings, through and including the date of delivery of a quarterly compliance certificate and thereafter the interest rate will fluctuate between Term SOFR or EURIBOR plus 1.250% per annum and Term SOFR or EURIBOR plus 1.750% per annum (or between the alternate base rate plus 0.250% per annum and the alternate base rate plus 0.750% annum), based upon the Consolidated Net Leverage Ratio (as defined in the 2026 Credit Agreement) at such time. In addition, Ashland will initially be required to pay fees of 0.175% per annum on the daily unused amount of the Revolving Facility through and including the date of delivery of a compliance certificate, and thereafter the fee rate will fluctuate between 0.125% and 0.275% per annum, based upon the Consolidated Net Leverage Ratio.

The Revolving Facility may be prepaid at any time without premium.

The 2026 Credit Agreement contains usual and customary representations and warranties, and usual and customary affirmative and negative covenants, including limitations on liens, additional subsidiary indebtedness, investments, mergers, dispositions, restricted payments, changes in the nature of business, affiliate transactions, restrictions on distributions by subsidiaries, use of proceeds, accounting changes and other customary limitations, as well as financial covenants (including maintenance of a maximum Consolidated Net Leverage Ratio and a minimum Consolidated Interest Coverage Ratio (as defined in the 2026 Credit Agreement)). The 2026 Credit Agreement also contains usual and customary events of default, including non-payment of principal, interest, fees and other amounts, material breach of a representation or warranty, non-performance of covenants and obligations, default on other material debt, bankruptcy or insolvency, material judgments, incurrence of certain material ERISA liabilities, impairment of loan documentation and change of control.

Ashland incurred and paid $2 million of debt issuance costs in connection with the 2026 Credit Agreement during the three and nine months ended June 30, 2026. These costs are being amortized over the term of the 2026 Credit Agreement using the straight-line method and are included within net interest and other (income) expense in the Statements of Consolidated Comprehensive Income (Loss). This amount was also recorded within debt issuance costs paid in the cash flows used by financing activities from continuing operations section of the Statement of Condensed Consolidated Cash Flows for the nine months ended June 30, 2026.

Accounts receivable facilities and supply chain finance program

Ashland continues to maintain its U.S. Accounts Receivable Sales Program, which was entered into during fiscal 2021, and its Foreign Accounts Receivable Sales Program, which was entered into during fiscal 2024. Under these programs, Ashland accounts for the accounts receivable transferred to buyers as sales. Ashland recognizes any gains or losses based on the excess of proceeds received net of buyer’s discounts and fees compared to the carrying value of the accounts receivable. Proceeds received, net of buyer’s discounts and fees, are recorded within the operating activities of the Statements of Condensed Consolidated Cash Flows. Losses on sale of accounts receivable, including related transaction expenses are recorded within the net interest and other (income) expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss). Ashland regularly assesses its servicing obligations and records them as assets or liabilities when appropriate. Ashland also monitors its obligation with regards to the limited guarantee and records the resulting guarantee liability when warranted. When applicable, Ashland discloses the amount of the accounts receivable that serves as over-collateralization as a restricted asset.

Accounts Receivable Sales Programs

Supply Chain Finance Program

During April 2024, Ashland authorized a financing program offered through JP Morgan and Taulia Alliance. Under this program, JP Morgan and its affiliates may purchase certain confirmed receivables directly from suppliers pursuant to the terms of a separate arrangement entered into between JPMorgan and Taulia Alliance and such suppliers. There were no changes to Ashland's standard payment terms with its suppliers in connection with this program. Ashland provides no guarantees to JP Morgan and Taulia Alliance under this program. A rollforward of obligations confirmed and paid is presented below:

Available borrowing capacity and liquidity

The borrowing capacity remaining under the 2026 Credit Agreement was $496 million, which reflects the full $500 million Revolving Credit Facility less a reduction of $4 million for letters of credit outstanding as of June 30, 2026.

Ashland had no available liquidity under its current U.S. and Foreign Accounts Receivable Sales Programs as of June 30, 2026.

Covenants related to current Ashland debt agreements

Ashland's debt contains usual and customary representations, warranties and affirmative and negative covenants, including financial covenants for leverage and interest coverage ratios, limitations on liens, additional subsidiary indebtedness, restrictions on subsidiary distributions, investments, mergers, sale of assets and restricted payments and other customary limitations. As of June 30, 2026, Ashland is in compliance with all debt agreement covenant restrictions.

The maximum consolidated net leverage ratio permitted under the 2026 Credit Agreement is 4.0. At June 30, 2026, Ashland’s calculation of the consolidated net leverage ratio was 2.3.

The minimum required consolidated interest coverage ratio under the 2026 Credit Agreement is 3.0. At June 30, 2026, Ashland’s calculation of the consolidated interest coverage ratio was 6.9.