FedEx Secures $1.8 Billion Financing, Files Form 10 and Names Freight Board
FedEx secured a five-year $1.2 billion revolving facility and a three-year $600 million delayed-draw term loan for FedEx Freight, and filed a Form 10 with the SEC outlining the tax-free spin-off set for June 1, 2026. It has appointed a ten-member board led by R. Brad Martin to oversee independent FedEx Freight operations.
1. FedEx Freight Secures $1.8 Billion in Credit Facilities
FedEx Freight has negotiated a five-year, $1.2 billion revolving-credit facility alongside a three-year, $600 million delayed-draw term-loan facility to support its upcoming separation from FedEx Corp. The revolving facility will fund ongoing working capital requirements and capital expenditures, while the term-loan tranche provides strategic flexibility for network investments. Both facilities include customary covenants and accordion features, and are backed by a syndicate led by Goldman Sachs & Co. LLC. Proceeds will finance technology upgrades across more than 355 service centers and underwrite fleet modernization for nearly 30,000 power units in the less-than-truckload (LTL) network.
2. FedEx Files Form 10 Registration Statement for Spin-Off
On January 16, 2026, FedEx Corp. filed a Form 10 registration statement with the U.S. Securities and Exchange Commission detailing the planned tax-free spin-off of FedEx Freight, expected to occur on June 1, 2026, subject to board approval and customary closing conditions. The filing highlights FedEx Freight’s strategy to leverage its 39,000-strong workforce, national LTL footprint and differentiated service offerings to drive profitable growth. It outlines a focused commercial plan targeting high-growth verticals, continued investment in automation and data analytics, and disciplined capital return policies. FedEx Freight’s common stock is slated to trade on the New York Stock Exchange under the symbol “FDXF.” An investor day is scheduled for April 8, 2026 in New York City, with a live webcast available on FedEx’s Investor Relations website.
3. FedEx Names Board for Independent FedEx Freight
FedEx Corp. has appointed a ten-member board for the independent FedEx Freight, chaired by R. Brad Martin, executive chairman of FedEx Corp., with John Smith—currently COO of U.S. & Canada—joining as a director and incoming CEO. The board includes finance veteran Jeffrey A. Davis (former CFO of Dollar Tree and Walmart U.S.), supply-chain expert Donald E. Frieson (ex-EVP, Lowe’s and Walmart), transportation leader Stephen E. Gorman (former COO of Delta Air Lines and CEO of Air Methods), and longtime FedEx audit head Robert A. King. Also named are Cindy J. Miller (ex-CEO, Stericycle; former UPS executive), technology services executive Amy J. Salcido (former Kyndryl president), finance specialist John P. Sauerland (CFO, The Progressive Corporation) and FedEx public policy director Samantha M. Smith. Skadden, Arps, Slate, Meagher & Flom LLP serves as legal counsel for the spin-off.