FedEx Secures $1.2B Revolver and $600M Term Loan, Names Board for Freight Spin-Off
FedEx secured a five-year $1.2 billion revolving credit and a three-year $600 million term loan for FedEx Freight and filed Form 10 for its June 1, 2026 tax-free spin-off and NYSE listing. A ten-member board chaired by R. Brad Martin and including incoming CEO John Smith will oversee the standalone LTL carrier.
1. Financing Facilities Secured for FedEx Freight Spin-Off
FedEx Freight has entered into a five-year, $1.2 billion revolving-credit facility and a three-year, $600 million delayed-draw term-loan facility to support its operations as an independent, less-than-truckload carrier. The revolving-credit line, arranged by a syndicate led by Goldman Sachs & Co. LLC, provides liquidity for working-capital needs and seasonal fluctuations in freight volume, while the term-loan facility offers flexibility to draw against committed capacity for strategic investments in technology and network infrastructure. Both facilities include customary financial covenants based on leverage and interest coverage ratios, and mature following the planned spin-off date of June 1, 2026.
2. Form 10 Registration Statement Filed with SEC
On January 16, 2026, FedEx Corp. filed a Form 10 registration statement with the U.S. Securities and Exchange Commission for the planned, tax-free spin-off of FedEx Freight. The filing outlines FedEx Freight’s strategy to leverage its expansive national LTL network of approximately 355 service centers and nearly 30,000 vehicles, supported by 39,000 team members, to deepen market penetration in high-growth verticals. Management projects sustained profitable growth and strong cash flow generation, targeting disciplined capital allocation for high-return innovation. The Form 10 indicates that FedEx Freight’s common stock is expected to list on the New York Stock Exchange under the symbol “FDXF,” subject to final approval by the FedEx Board and customary closing conditions.
3. Independent Board of Directors Announced
FedEx Corp. has appointed a ten-member board for the standalone FedEx Freight, to be chaired by R. Brad Martin, executive chairman of the FedEx Corp. board. John Smith, incoming president and CEO of FedEx Freight, joins as a director alongside industry executives including Jeffrey A. Davis, former CFO of Dollar Tree and Labcorp director; Donald E. Frieson, ex-supply chain EVP at Lowe’s; and Cindy J. Miller, former CEO of Stericycle and UPS executive. The board’s composition reflects expertise in finance, supply chain management, technology and public policy, and will guide the company through its April 8, 2026 investor day in New York City and the spin-off execution on June 1.