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Debt
 6 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt DEBT
The following table summarizes Valvoline’s total debt as of:

(In millions)March 31
2026
September 30
2025
2031 Notes$535.0 $535.0 
Term Loan A
403.8 415.6 
Term Loan B738.2 — 
Revolver (a)
— 130.0 
Debt issuance costs and discounts(19.3)(6.6)
Total debt1,657.7 1,074.0 
Current portion of long-term debt31.2 23.8 
Long-term debt$1,626.5 $1,050.2 
 
(a)As of March 31, 2026, the total borrowing capacity remaining under the $475.0 million revolving credit facility was $470.1 million due to a reduction of $4.9 million for letters of credit outstanding.

As of March 31, 2026, Valvoline was in compliance with all covenants under its long-term borrowings.

Term Loan B

Key terms and conditions

In December 2025, Valvoline amended its Senior Credit Agreement commensurate with closing the acquisition of Breeze to add a seven-year $740.0 million Term Loan B.

The principal balance of the Term Loan B is required to be repaid in quarterly installments of approximately $1.9 million beginning with the first full fiscal quarter after the acquisition of Breeze and the balance due at maturity with prepayment required in the amount of the net cash proceeds due from certain events. Amounts outstanding under the Term Loan B may be prepaid at any time, and from time to time, in whole or part, without premium or penalty. At Valvoline’s option, amounts outstanding under the Term Loan B bear interest at either the adjusted term Secured Overnight Financing Rate plus 2.000% per year or an alternate base rate plus 1.000% per year. The effective interest rate for the Term Loan B was 5.668% as of March 31, 2026.

Summary of activity

The net proceeds from the Term Loan B were used to fund the Breeze acquisition with the remaining proceeds used to pay down the outstanding balance on the revolving credit facility (“Revolver”).

Lease and franchisee guarantees

The Company guaranteed future payments related to certain leases assigned in connection with divesting retail stores and 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 one to 17 years. The undiscounted maximum
potential future payments under the lease guarantees were $87.0 million as of March 31, 2026. In addition, the Company guaranteed certain outstanding franchisee debt obligations that have remaining terms ranging from 8 months to five years and total $12.6 million as of March 31, 2026. The Company has not recorded a liability for these guarantees as the likelihood of making future payments is not considered probable.