STAMFORD, Conn.--Aug. 18, 2006-- Xerox Corporation closed today on a $500 million offering of senior unsecured notes due in 2017 and bearing a coupon of 6.75 percent. In addition, the company closed on a $150 million offering of floating rate senior unsecured notes due in 2009. "These successful transactions give us flexibility to fund our customer financing activities with more unsecured debt than secured debt - an important step in returning Xerox to investment grade," said Lawrence A. Zimmerman, Xerox senior vice president and chief financial officer, noting that the funding was "upsized" from the initial $400 million offering announced earlier this week. Fitch Ratings earlier this month raised its rating on Xerox to investment grade, citing the company's solid balance sheet, strengthened credit metrics, ample liquidity and improving post-sale revenue trends. In the second quarter of this year, Xerox generated operating cash flow of $220 million after contributing $226 million to its U.S. pension plans. The company closed the second quarter with $1.2 billion in cash and short-term investments. Debt declined $1 billion year over year and about $600 million from the first quarter of this year. "Xerox's financial strength allows us to access the markets on an opportunistic basis, taking advantage of favorable conditions to lock in attractive interest rates," added Zimmerman.