Xylem Inc. announced on September 29, 2026, the completion of a public offering of $1.5 billion in aggregate principal amount of Senior Notes. The offering consists of three tranches: $500,000,000 of 5.250% Senior Notes due 2029, $500,000,000 of 5.450% Senior Notes due 2032, and $500,000,000 of 5.850% Senior Notes due 2037.
The Notes are senior unsecured obligations of the company and rank equally with all other unsecured and unsubordinated obligations. Interest payments are scheduled semiannually, beginning in 2027. The 2029 Notes will pay interest on March 28 and September 28, while the 2032 and 2037 Notes will pay interest on January 15 and July 15.
The company intends to use the net proceeds from the sale of the Notes, combined with cash on hand, to finance the previously announced acquisition of the Cornell Pump and Roper Pump businesses, as well as to pay associated costs and for general corporate purposes.
The Notes are governed by a senior indenture with Deutsche Bank Trust Company Americas as trustee. The indenture includes covenants that limit the company’s ability to incur debt secured by liens, engage in sale and leaseback transactions, and consolidate or merge under certain thresholds. Additionally, the notes contain provisions for mandatory redemption if the acquisition is not completed by August 10, 2027, or if the equity purchase agreement is terminated prior to that date.
The offering was managed by Citigroup Global Markets Inc., ING Financial Markets LLC, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., and Wells Fargo Securities LLC under a registration statement on Form S-3.
