Xylem Inc. Announces Closing of Offering of €500 Million of 2.250% Senior Notes due 2023

RYE BROOK, N.Y.--()--Xylem Inc. (NYSE:XYL), a leading global water technology company, today announced that it has closed its offering of €500 million of 2.250% senior notes due 2023.

The Company intends to use the net proceeds of the transaction, together with cash on hand, to repay the $600 million principal amount of its outstanding 3.550% senior notes due 2016, along with accrued and unpaid interest.

The senior notes offering was made pursuant to an effective shelf registration statement on file with the U.S. Securities and Exchange Commission (SEC). A final prospectus supplement and accompanying prospectus describing the terms of the offering was filed with the SEC. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Company, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling BNP Paribas toll-free at +1.800.854.5674, Citigroup Global Markets Limited toll-free at +1.800.831.9146, or J.P. Morgan Securities plc toll-free at +1.866.430.0686. The offering closed on March 11, 2016. BNP Paribas, Citigroup Global Markets Limited and J.P. Morgan Securities plc acted as joint lead book-running managers for the offering.

In addition, Xylem announced today that it is calling its 3.550% senior notes due September 20, 2016 for redemption on April 11, 2016 in accordance with the terms of the notes and its Indenture dated September 20, 2011 between Xylem Inc., ITT Corporation and MUFG Union Bank, N.A., formerly known as Union Bank, N.A. (the “Trustee”). The 3.550% senior notes will be redeemed for cash at a price equal to 100% of their principal amount plus accrued and unpaid interest up to, but excluding, the redemption date and the applicable make-whole premium to be determined in accordance with the governing indenture and the 3.550% senior notes.

From the redemption date forward, the 3.550% senior notes will no longer be deemed outstanding and interest will no longer accrue or be payable. Payment of the redemption price will be made only upon surrender of the notes in accordance with the applicable procedures of the Depository Trust Company. The Notice of Redemption will be delivered to the holders of the notes on Friday, March 11, 2016. Questions regarding the Notice of Redemption should be directed to the Trustee at +1.646.452.2005.

About Xylem

Xylem (XYL) is a leading global water technology provider, enabling customers to transport, treat, test and efficiently use water in public utility, residential and commercial building services, industrial and agricultural settings. The Company does business in more than 150 countries through a number of market-leading product brands, and its people bring broad applications expertise with a strong focus on finding local solutions to the world’s most challenging water and wastewater problems. Xylem is headquartered in Rye Brook, New York with 2015 revenues of $3.7 billion and approximately 12,700 employees worldwide. Xylem was named to the Dow Jones Sustainability Index, North America for the last four years for advancing sustainable business practices and solutions worldwide.

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.

Forward-Looking Statements

This press release contains information that may constitute “forward-looking statements.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Generally, the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “forecast,” “believe,” “target,” “will,” “could,” “would,” “should” and similar expressions identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Any statements that are not historical in nature are forward-looking statements, including any statements regarding the intended use of proceeds from the senior notes offering and the Company’s intention to redeem its 2016 notes.

Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such forward-looking statements. The Company discusses its primary risks under the heading “Risk Factors” in its Annual Report on Form 10-K and from time to time in subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements in this release are based on information currently available to the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contacts

Xylem Inc.
Media
Kelly McAndrew, +1 914-323-5969
Kelly.McAndrew@xyleminc.com
or
Investors
Phil DeSousa, +1 914-323-5930
phil.desousa@xyleminc.com

Release Summary

Xylem Inc., a leading global water technology company, today announced that it has closed its offering of €500 million of 2.250% senior notes due 2023.

Contacts

Xylem Inc.
Media
Kelly McAndrew, +1 914-323-5969
Kelly.McAndrew@xyleminc.com
or
Investors
Phil DeSousa, +1 914-323-5930
phil.desousa@xyleminc.com