Xylem Inc. filed a current report on September 9, 2026, disclosing that on September 8, 2026, the company entered into a new five-year senior unsecured revolving credit facility of up to $1,500,000,000 and simultaneously terminated its prior $1,000,000,000 revolving credit facility.

Key Highlights

  • New facility size: Xylem entered into a senior unsecured revolving credit facility in an aggregate principal amount of up to $1,500,000,000, available in U.S. dollars and in Euros.
  • Expansion option: The facility may be increased by up to $500,000,000, bringing the maximum aggregate principal amount to $2,000,000,000, subject to lender consent.
  • Prior facility terminated: The Five-Year Revolving Credit Facility Agreement dated March 1, 2023, which provided a senior unsecured $1,000,000,000 revolving credit facility, was terminated on September 8, 2026.
  • Sustainability-linked pricing: The applicable interest margin includes an adjustment based on the company's annual Sustainability Spread Adjustment, in addition to a credit-rating-based pricing grid.
  • No borrowings outstanding: According to the filing, no borrowings were outstanding under the new facility as of the date of the report.
  • Administrative agent: Citibank, N.A. serves as Administrative Agent, with JPMorgan Chase Bank, N.A. as Syndication Agent and ING Capital LLC as Sustainability Structuring Agent.

Xylem Replaces 2023 Credit Facility with Larger 2026 Agreement

According to the filing, Xylem Inc. (NYSE:XYL), as borrower, entered into the 2026 Credit Agreement on September 8, 2026, arranged by a syndicate of lead arrangers including Citibank, N.A., BNP Paribas Securities Corp., ING Bank N.V. Dublin Branch, JPMorgan Chase Bank, N.A., and Wells Fargo Securities, LLC. The company disclosed that the facility will be used for working capital and other general corporate purposes.

The filing states that interest on loans is payable either quarterly or at the expiration of any applicable Term SOFR or EURIBOR interest period. Borrowings accrue interest at, at the company's election, a base rate or a Term SOFR or EURIBOR rate plus an applicable margin determined by a credit-rating-based pricing grid. Quarterly commitment fees and letter of credit fees are also payable to lenders, with rates similarly tied to the company's credit rating, each subject to a Sustainability Fee Adjustment.

The 2026 Credit Agreement requires Xylem to maintain a consolidated total debt to consolidated EBITDA ratio based on the last four fiscal quarters, the filing disclosed. The agreement also contains, according to the filing, customary covenants covering limitations on secured debt, subsidiary debt, liens, sale and lease-back transactions, mergers, consolidations, liquidations, dissolutions, and asset sales, as well as customary events of default. The company also has the ability to designate subsidiaries as borrowers under the facility, subject to conditions set forth in the agreement. The filing was signed by Andrea van der Berg, Executive Vice President and Chief Financial Officer.

What Was Disclosed

Xylem disclosed the entry into a $1,500,000,000 five-year senior unsecured revolving credit facility on September 8, 2026, replacing a previously existing $1,000,000,000 facility from 2023. No amounts were drawn under the new facility at the time of the filing.