Debt

9 Months Ended

Jun. 30, 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)	June 30, 2019			September 30, 2018
4.750% notes, due 2022	$	1,083		$	1,083
Term Loan B, due 2024		588			593
6.875% notes, due 2043		376			376
Term Loan A, due 2022		195			195
Accounts receivable securitizations		214			195
6.50% junior subordinated notes, due 2029		53			52
Revolving credit facility		90			25
Medium-term notes, due 2019, interest of 9.4%		—			5
Other (a)		8			5
Total debt		2,607			2,529
Short-term debt (includes current portion of long-term debt)		(332	)		(254	)
Long-term debt (less current portion)	$	2,275		$	2,275

(a)

Includes $18 million and $21 million of debt issuance cost discounts as of June 30, 2019 and September 30, 2018, respectively, in addition to a European short-term loan facility with an outstanding balance of $23 million at both June 30, 2019 and September 30, 2018.

The scheduled aggregate maturities of long-term debt by year (including the current portion and excluding debt issuance costs) are as follows: $2 million remaining in 2019, $6 million in 2020, $14 million in 2021, $1,279 million in 2022 and $6 million in 2023.

Available borrowing capacity

The borrowing capacity remaining under the Revolving Credit Facility was $661 million due to an outstanding balance of $90 million, as well as a reduction of $49 million for letters of credit outstanding at June 30, 2019. Ashland's total borrowing capacity at June 30, 2019 was $673 million, which included $12 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 June 30, 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 June 30, 2019, Ashland’s calculation of the consolidated net leverage ratio was 3.6.

The minimum required consolidated interest coverage ratio under the 2017 Credit Agreement during its entire duration is 3.0. At June 30, 2019, Ashland’s calculation of the interest coverage ratio was 5.6.