FedEx Freight, the less-than-truckload (LTL) unit of FedEx Corp., has executed a five-year, $1.2 billion revolving-credit facility alongside a three-year, $600 million delayed-draw term-loan facility. Goldman Sachs & Co. LLC served as lead arranger for both facilities, while Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel. The new financing package enhances FedEx Freight’s liquidity profile, supports working-capital needs and funds planned capital investments, and carries covenant terms aligned with investment-grade credit metrics. Pro forma for the spin-off, the combined total of these facilities represents approximately 1.5 times the unit’s annual adjusted EBITDA as reported in FedEx Corp.’s fiscal 2025 annual report.

On January 16, 2026, FedEx Corp. filed a Form 10 registration statement with the U.S. Securities and Exchange Commission for the standalone listing of FedEx Freight. The document outlines a business strategy centered on technology investments, operational efficiencies and targeted growth in high-margin verticals such as retail, automotive and healthcare. It forecasts sustained free cash flow generation in excess of $1 billion annually by fiscal 2028 and commits to a disciplined capital allocation policy that includes share repurchases post spin-off. The Form 10 is publicly available on the SEC’s website and details pro forma balance sheet figures reflecting a target net leverage ratio below 2.0x.

FedEx Corp. has set June 1, 2026, as the effective date for the tax-free spin-off of FedEx Freight, subject to board approval and customary closing conditions. Upon separation, FedEx Freight’s shares will trade on the New York Stock Exchange under the symbol 'FDXF.' FedEx Corp. expects the transaction to unlock value by creating two focused enterprises: one dedicated to express and ground services and the other to LTL freight. Institutional investors will receive one share of FedEx Freight for each share of FedEx Corp. held, with cash paid in lieu of fractional shares. The spin-off is projected to be neutral to FedEx Corp.’s corporate credit rating.

FedEx Corp. has announced a ten-member board of directors for the future independent FedEx Freight. R. Brad Martin, executive chairman of the FedEx Corp. board since September 2025, will chair the new board. John Smith, incoming president and chief executive officer of FedEx Freight and former COO of U.S. and Canada operations, will also serve as a director. The board includes seasoned leaders such as Jeffrey A. Davis (former CFO of Dollar Tree and Walmart U.S.), Donald E. Frieson (ex-supply chain EVP at Lowe’s and Walmart), Stephen E. Gorman (former COO of Delta Air Lines), Cindy J. Miller (ex-CEO of Stericycle and UPS executive), Amy J. Salcido (former president U.S. at Kyndryl), John P. Sauerland (CFO and Personal Lines President at The Progressive Corporation) and Samantha M. Smith (FedEx Corp. staff director of global public policy). This governance team brings deep expertise in transportation, logistics, finance and technology, positioning FedEx Freight for targeted growth following its separation.