Xylem Inc. Enters $1.5B Five-Year Revolving Credit Facility

What Happened
Xylem Inc. announced on September 8, 2026 that it entered into a Five-Year Revolving Credit Facility Agreement providing up to $1,500,000,000 in senior unsecured revolving commitments (available in USD and EUR), with the option to increase by up to $500,000,000 to a $2,000,000,000 maximum. The facility was arranged by a syndicate led by Citibank, BNP Paribas, ING, JPMorgan and Wells Fargo, with Citibank as Administrative Agent. In connection with the new facility, Xylem terminated its prior Five-Year Revolving Credit Facility dated March 1, 2023 (which had a $1.0B commitment and $300M upsizing option).

Key Details

• Facility size: $1.5 billion initial commitments; option to increase up to $2.0 billion with lender consent.
• Maturity/term: five-year unsecured revolving credit facility (entered September 8, 2026).
• Pricing & fees: interest payable quarterly or at end of Term SOFR/EURIBOR periods; loans bear interest at base rate or Term SOFR/EURIBOR plus a margin determined by a pricing grid tied to Xylem’s credit rating and a Sustainability Spread Adjustment; quarterly commitment fees and letter-of-credit fees also apply.
• Covenants & controls: requires a consolidated total debt / consolidated EBITDA leverage ratio (measured on last four fiscal quarters); contains customary covenants (limits on secured debt, liens, mergers, asset sales) and customary events of default. No borrowings were outstanding under the new facility as of the filing date.
• Subsidiaries: Xylem can designate eligible subsidiaries to borrow under the facility subject to conditions.

Why It Matters
This new five-year revolver provides Xylem with a larger, flexible source of liquidity for working capital and general corporate needs and extends its committed borrowing capacity compared with the prior 2023 facility. The pricing tied to credit ratings and a sustainability adjustment means borrowing costs will vary with Xylem’s credit profile and sustainability performance. Investors should note the leverage covenant (total debt / EBITDA) and customary restrictions, which can affect capital allocation, but there were no outstanding borrowings on the facility at the time of the filing.