Debt

3 Months Ended

Dec. 31, 2019

NOTE H – DEBT

The following table summarizes Ashland’s current and long-term debt as of the dates reported in the Condensed Consolidated Balance Sheets.

(In millions)	December 31, 2019			September 30, 2019
4.750% notes, due 2022	$	1,081		$	1,080
6.875% notes, due 2043		374			374
Accounts receivable securitizations		157			144
6.50% junior subordinated notes, due 2029		55			54
Other (a)		14			15
Total debt		1,681			1,667
Short-term debt (includes current portion of long-term debt)		(179	)		(166	)
Long-term debt (less current portion)	$	1,502		$	1,501

(a)

Includes $11 million and $12 million of debt issuance cost discounts as of December 31, 2019 and September 30, 2019, respectively. Additionally, as December 31, 2019 and September 30, 2019, Other included a European short-term loan facility with an outstanding balance of $22 million for each period.

The scheduled aggregate maturities of long-term debt by year (including the current portion and excluding debt issuance costs) are as follows as of December 31, 2019: zero remaining in 2020, zero in 2021, $1,083 million in 2022, zero in 2023 and zero in 2024.

See Note R for subsequent events related to Ashland’s debt.

Available borrowing capacity

The borrowing capacity remaining under the 2017 $800 million Revolving Credit Facility was $766 million due to a reduction of $34 million for letters of credit outstanding as of December 31, 2019. Ashland's total borrowing capacity at December 31, 2019 was $793 million, which included $27 million of available capacity from the two accounts receivable securitization facilities.

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 December 31, 2019, Ashland is in compliance with all debt agreement covenant restrictions.

The maximum consolidated net leverage ratio permitted under Ashland's most recent credit agreement (the 2017 Credit Agreement) is 4.5. At December 31, 2019, Ashland’s calculation of the consolidated net leverage ratio was 2.9.

The minimum required consolidated interest coverage ratio under the 2017 Credit Agreement during its entire duration is 3.0. At December 31, 2019, Ashland’s calculation of the interest coverage ratio was 5.9.