Line of credit, current borrowing capacity

[Table of Contents](#if58bf2b7da5f49b78db442640b215d13_7)The carrying value of the Notes was as follows at the dates indicated:

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| (In millions) | April 30,2022 |  | July 31,2021 |  | Effective Interest Rate |
| Senior unsecured notes issued June 2020: |  |  |  |  |  |
| 0.650% notes due July 2023 | $ | 500  |  |  | $ | 500  |  |  | 0.837% |
| 0.950% notes due July 2025 | 500  |  |  | 500  |  |  | 1.127% |
| 1.350% notes due July 2027 | 500  |  |  | 500  |  |  | 1.486% |
| 1.650% notes due July 2030 | 500  |  |  | 500  |  |  | 1.767% |
| Total senior unsecured notes | 2,000  |  |  | 2,000  |  |  |  |
| Unamortized discount and debt issuance costs | (12) |  |  | (14) |  |  |  |
| Net carrying value senior unsecured notes | $ | 1,988  |  |  | $ | 1,986  |  |  |  |

Interest is payable semiannually on January 15 and July 15 of each year. The discount and debt issuance costs are amortized to interest expense over the term of the Notes under the effective interest method. We paid $12 million in interest on the Notes during each of the nine months ended April 30, 2022 and 2021.The Notes are senior unsecured obligations of Intuit and rank equally with all existing and future unsecured and unsubordinated indebtedness of Intuit and are redeemable by us at any time, subject to a make-whole premium. Upon the occurrence of change of control transactions that are accompanied by certain downgrades in the credit ratings of the Notes, we will be required to repurchase the Notes at a repurchase price equal to 101% of the aggregate outstanding principal plus any accrued and unpaid interest to but not including the date of repurchase. The indenture governing the Notes requires us to comply with certain covenants. For example, the Notes limit our ability to create certain liens and enter into sale and leaseback transactions. As of April 30, 2022 we were compliant with all covenants governing the Notes.

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| Term Loan |

On November 1, 2021 we entered into a credit agreement with certain institutional lenders with an aggregate principal amount of $5.7 billion, which includes a $4.7 billion unsecured term loan that matures on November 1, 2024. On November 1, 2021 we borrowed the full $4.7 billion under the unsecured term loan to fund a portion of the cash consideration for the acquisition of Mailchimp. Under this agreement we may, subject to certain customer conditions, on one or more occasions increase commitments under the term loan in an amount not to exceed $400 million in the aggregate. The term loan accrues interest at rates that are equal to, at our election, either (i) the alternate base rate plus a margin that ranges from 0.0% to 0.125% or SOFR plus a margin that range from 0.625% to 1.125%. Actual margins under either election will be based on our senior debt credit ratings. Interest on the term loan is payable monthly. The credit agreement includes customary affirmative and negative covenants. See Note 6, "Current Liabilities - Unsecured Revolving Credit Facility," for more information. At April 30, 2022, $4.7 billion was outstanding under the term loan and unamortized debt issuance costs were $5 million. The carrying value of the term loan is net of debt issuance costs and approximates its fair value. We paid $21 million in interest on the term loan during the nine months ended April 30, 2022. We paid $2 million in interest on our previous term loan under the 2019 Credit Facility during the nine months April 30, 2021.

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| Secured Revolving Credit Facility |

On February 19, 2019 a subsidiary of Intuit entered into a $300 million secured revolving credit facility with a lender to fund a portion of our loans to qualified small businesses. The revolving credit facility is secured by cash and receivables of the subsidiary and is non-recourse to Intuit Inc. We have entered into several amendments to the secured revolving credit facility, most recently on February 18, 2022, primarily to extend the commitment term and maturity date, and update the benchmark interest rate. Under the amended agreement, $150 million of the facility is committed and $150 million is uncommitted. Advances accrue interest at adjusted daily simple SOFR plus 1.5%. Unused portions of the committed credit facility accrue interest at a rate ranging from 0.25% to 0.75%, depending on the total unused committed balance. The commitment term is through July 17, 2023 and the final maturity date is January 17, 2024. The agreement includes certain affirmative and negative covenants, including financial covenants that require the subsidiary to maintain specified financial ratios. As of April 30, 2022 we were compliant with all required covenants. At April 30, 2022, $170 million was outstanding under this facility and the weighted-average interest rate was 1.88%, which includes the interest on the unused committed portion. The outstanding balance is secured by cash and receivables of the subsidiary totaling $478 million. Interest on the facility is payable monthly. We paid $1 million of interest on the secured revolving credit facility during the nine months ended April 30, 2022 and $2 million during the nine months ended April 30, 2021.  


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|  |  Intuit Q3 Fiscal 2022 Form 10-Q | 21 |  |


