FedEx Freight has arranged a five-year, $1.2 billion revolving-credit facility alongside a three-year, $600 million delayed-draw term-loan facility to support its operations as an independent entity. The revolving-credit line will provide liquidity for daily working-capital needs, while the term-loan facility can be drawn over the next 18 months to fund targeted network investments and technology upgrades. Goldman Sachs & Co. LLC served as lead arranger on both facilities, which include customary covenants tied to leverage and interest-coverage ratios. The financing package strengthens FedEx Freight’s balance sheet ahead of its planned spin-off, ensuring access to capital for growth initiatives and shareholder distributions.

FedEx Corp. filed a Form 10 registration statement with the U.S. Securities and Exchange Commission for the planned spin-off of FedEx Freight, expected to occur on June 1, 2026, subject to board approval and customary closing conditions. The filing details FedEx Freight’s standalone strategy to leverage its national less-than-truckload network, 39,000 team members and 355 service centers to drive best-in-class transit times and reliability. Management projects sustained profitable growth, strong cash flow generation and disciplined capital allocation to fund high-return innovation and return capital to shareholders. FedEx Freight’s common stock is slated to list on the New York Stock Exchange under the symbol “FDXF” in a transaction structured to be tax-free for FedEx and its shareholders for U.S. federal income tax purposes.

FedEx Corp. announced the composition of the initial board of directors for FedEx Freight, naming ten members led by chairman R. Brad Martin and incoming CEO John Smith. The board brings together executives with deep experience in logistics, finance, supply chain and technology, including former CFOs of Dollar Tree and Qurate Retail Group, supply-chain veterans from Lowe’s and Walmart, and technology leaders from IBM spinoff Kyndryl. This governance team is tasked with overseeing FedEx Freight’s commercial execution, capital deployment and risk management as it transitions to a standalone company. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel in the spin-off process.