FedEx Freight Holding Company, Inc., a wholly owned subsidiary of FedEx Corp., has commenced a private offering of senior unsecured notes to finance the planned spin-off of its less-than-truckload (LTL) business. The notes will fund the separation of FedEx Freight from the parent, establishing it as an independent, publicly traded company that will own and operate the legacy LTL network through multiple regional subsidiaries. Proceeds are earmarked to repay intercompany indebtedness, fund transaction expenses and provide the new entity with liquidity to support growth initiatives post–spin-off. The issuance is structured to align with investment-grade covenants and is expected to close in the coming quarter, subject to market conditions and customary closing requirements.

As part of a comprehensive overhaul of its domestic operations in France, FedEx announced plans to eliminate up to 500 positions nationwide while committing up to €78 million (approximately $91.6 million) to modernize facilities and enhance automation. The restructuring will streamline sorting centers, consolidate underutilized depots and upgrade handling equipment to boost throughput by an estimated 15% in key hubs such as Paris and Lyon. Management forecasts annual run-rate cost savings of €25 million once integration is complete, positioning the French arm for improved margin performance in a market that accounted for roughly 8% of FedEx’s European revenue in the last fiscal year.