Xylem Signs First-of-its-Kind Revolving Credit Facility in U.S. to Couple Interest Rates with Sustainability Performance
5 March 2019
RYE BROOK, N.Y.--(BUSINESS WIRE)--
Xylem Inc. (NYSE: XYL), a leading global water technology company
dedicated to solving the world’s most challenging water issues, has
announced execution of its new $800 million Senior Unsecured Revolving
Credit Facility. With this transaction, Xylem has replaced its five-year
$600 million revolving credit facility, while adding a
sustainability-linked pricing mechanism to the new facility.
The deal is one of the first sustainable improvement loans in the U.S.
and the first in the General Industrial Sector. The interest rate is
index-linked to Xylem’s overall sustainability performance as rated by
Sustainalytics, a leading independent global provider of environmental,
social and corporate governance (ESG) ratings. Improvements in Xylem’s
sustainability performance will reduce interest rates under the facility.
“We are excited to be the first water technology company in the U.S. to
secure a sustainability-improvement loan that rewards our continued
efforts to integrate sustainability and social value creation across our
operations, and helps advance our strategy and mission to solve global
water challenges,” said Mark Rajkowski, Senior Vice President and CFO of
“As part of our mission to solve water, Xylem provides technology
solutions that help customers around the world drive water and energy
efficiencies and reduce impact on their local ecosystems,” said Claudia
Toussaint, Senior Vice President, General Counsel & Corporate Secretary,
and executive sponsor for ESG at Xylem. “We are also committed to
reducing our own environmental footprint and helping communities in need
become more water-secure. Sustainability is core to our company, our
customers and our future.”
The revolving credit facility was entered into with a syndicate of
lenders arranged by Citibank, N.A., JPMorgan Chase Bank, N.A., ING Bank
N.V., Dublin Branch, BNP Paribas Securities Corp., Wells Fargo
Securities, LLC, as Lead Arrangers and Joint Bookrunners, Citibank, N.A.
as Administrative Agent, JPMorgan Chase Bank, N.A. as Syndication Agent,
ING Capital LLC as Sustainability Coordinator, BNP Paribas and Wells
Fargo Bank, National Association as Documentation Agents. The facility
will be used for general corporate purposes.
Xylem (XYL) is a leading global water technology company committed to
developing innovative technology solutions to the world’s water
challenges. The Company’s products and services move, treat, analyze,
monitor and return water to the environment in public utility,
industrial, residential and commercial building services settings. Xylem
also provides a leading portfolio of smart metering, network
technologies and advanced infrastructure analytics solutions for water,
electric and gas utilities. The Company’s approximately 17,000 employees
bring broad applications expertise with a strong focus on identifying
comprehensive, sustainable solutions. Headquartered in Rye Brook, New
York, with 2018 revenue of $5.2 billion, Xylem does business in more
than 150 countries through a number of market-leading product brands.
The name Xylem is derived from classical Greek and is the tissue that
transports water in plants, highlighting the engineering efficiency of
our water-centric business by linking it with the best water
transportation of all – that which occurs in nature. For more
information, please visit us at www.xylem.com.