FedEx Freight has arranged two new credit lines to support its impending separation from FedEx Corp. The LTL unit signed a five-year, $1.2 billion revolving-credit facility together with a three-year, $600 million delayed-draw term-loan. These facilities, structured with an initial pricing spread of 125 basis points over SOFR and a letter-of-credit fee of 150 basis points, provide liquidity for working-capital needs, fleet upgrades and network investments. Proceeds from the revolving facility will underwrite seasonal volume swings, while the delayed-draw term loan will fund infrastructure projects once the spin-off is complete. Each facility includes customary covenants, including a maximum secured leverage ratio of 2.5x and a minimum consolidated interest-coverage ratio of 3.5x.

FedEx Corp. filed a Form 10 registration statement with the SEC on January 16, 2026, marking a critical regulatory milestone in the planned tax-free spin-off of FedEx Freight. The filing details a targeted June 1 separation date, subject to board approval and customary closing conditions. The document outlines Freight’s strategy to leverage its network of 355 service centers and 39,000 employees to drive best-in-class transit times and deepen market share in the resilient LTL sector. It forecasts a standalone capital structure with net leverage of approximately 2.0x EBITDA and a commitment to return at least 25% of free cash flow to stockholders over a multi-year period through dividends and share repurchases.

FedEx announced the ten-member board for the spun-off entity, chaired by R. Brad Martin, executive chairman of FedEx Corp., alongside incoming CEO John Smith. The board comprises seasoned executives from transportation, retail and technology sectors, including Jeffrey A. Davis (former CFO of Dollar Tree and Walmart U.S.), Donald E. Frieson (ex-EVP of Lowe’s supply chain), and Cindy J. Miller (former CEO of Stericycle and senior UPS executive). This mix of logistical, financial and governance expertise is designed to support Freight’s commercial strategy, technology investments and operational efficiencies. Board approval of the credit facilities and final separation plan is anticipated in Q2, ahead of the June listing on the New York Stock Exchange under the symbol "FDXF."