business, we cannot reasonably estimate the length or severity of this pandemic, or the extent to which the disruption may impact our consolidated financial position, results of operations and cash flows in 2020 and beyond. We believe that we will have sufficient cash to meet our needs based on our existing cash balances, the cash we expect to generate from our manufacturing operations and the availability of our existing credit facility.
Credit Facilities and Other Sources of Capital
Textron has a senior unsecured revolving credit facility for an aggregate principal amount of $1.0 billion, of which up to $100 million is available for the issuance of letters of credit. We may elect to increase the aggregate amount of commitments under the facility to up to $1.3 billion by designating an additional lender or by an existing lender agreeing to increase its commitment. The facility expires in October 2024, subject to up to two one-year extensions at our option with the consent of lenders representing a majority of the commitments under the facility. At July 4, 2020 and January 4, 2020, there were no amounts borrowed against the facility.
On April 1, 2020, we entered into a 364-Day Term Loan Credit Agreement in an aggregate principal amount of $500 million and borrowed the full principal amount available under the agreement. At our current credit ratings, the borrowings accrue interest at a rate equal to the London interbank offered rate, subject to a floor of 0.75%, plus 2.0%, which is an annual interest rate of 2.75% at July 4, 2020. We can pre-pay any amount of the principal balance during the term of the loan; however, we cannot borrow additional principal amounts. The Term Loan Credit Agreement restricts us from incurring additional indebtedness, subject to various exceptions, one of which allows us to borrow under our $1.0 billion revolving credit facility. While this loan is outstanding, we have agreed not to repurchase any of our common stock. The principal amount outstanding, plus accrued and unpaid interest and fees, is due on March 31, 2021.
We also maintain an effective shelf registration statement filed with the Securities and Exchange Commission that allows us to issue an unlimited amount of public debt and other securities. On March 17, 2020, we issued $650 million of SEC-registered fixed-rate notes due June 2030 with an annual interest rate of 3.00%.
To further enhance our liquidity, in the first quarter of 2020, we borrowed $377 million against the cash surrender value of our corporate-owned life insurance policies, representing the maximum amount available to be borrowed against these policies. At July 4, 2020, there was $362 million of outstanding borrowings against these insurance policies.
Manufacturing Group Cash Flows
Cash flows from continuing operations for the Manufacturing group as presented in our Consolidated Statements of Cash Flows are summarized below:
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Six Months Ended
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July 4,
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June 29,
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(In millions)
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2020
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2019
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Operating activities
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$
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(148)
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$
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(33)
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Investing activities
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(85)
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(127)
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Financing activities
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1,238
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(55)
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In the first half of 2020, the net cash outflow from operating activities was $148 million, compared with $33 million in the first half of 2019. The increase in net cash outflow of $115 million between the periods primarily reflected lower earnings and a $532 million period over period increase in cash used to settle accounts payable, principally at the Textron Aviation segment. These changes were partially offset by a $288 million reduction in cash used for inventories, primarily at the Textron Aviation segment, higher customer advances/deposits of $227 million, largely at the Bell segment, and a $121 million increase in cash received from accounts receivable.
Cash flows used in investing activities primarily included capital expenditures of $96 million and $135 million in the first half of 2020 and 2019, respectively. In the first half of 2020, cash flows provided by financing activities included net proceeds of $642 million from the issuance of long-term debt and $498 million from borrowings under the 364-Day Term Loan Credit Agreement discussed above. In addition, we received $377 million in proceeds from borrowings against corporate-owned life insurance policies. These cash inflows were partially offset by the repayment of $194 million of outstanding debt and $54 million of cash paid to repurchase an aggregate of 1.3 million shares of our common stock under both a prior 2018 share repurchase plan and a recent repurchase plan as described below. In the first half of 2019, cash flows used in financing activities primarily included $361 million of cash paid to repurchase an aggregate of 7.0 million shares of our outstanding common stock, partially offset by $297 million of net proceeds from the issuance of long-term debt.
On February 25, 2020, our Board of Directors authorized the repurchase of up to 25 million shares of our common stock. This new plan allows us to opportunistically repurchase shares and to continue our practice of repurchasing shares to offset the impact of dilution from shares issued under compensation and benefit plans. The 2020 plan replaces the prior 2018 share repurchase authorization. We have suspended share repurchases while our 364-Day Term Loan Credit Agreement remains outstanding.