FedEx Corp. has announced the commencement of exchange offers and consent solicitations for its outstanding senior notes, as it moves forward with the full separation of its FedEx Freight business through the capital markets to create a new publicly traded company. The exchange offers and consent solicitations are being made in connection with the contemplated separation, but the separation is not conditioned upon the completion of these offers.
The exchange consideration, early participation payment, and total consideration for each series of existing notes have been outlined in the press release. For example, the 3.400% notes due 2028 with a principal amount outstanding of $500,000,000 have an exchange consideration of $970 principal amount of new 3.400% notes due 2028 and $2.50 in cash, or a total consideration of $1,000 principal amount of new 3.400% notes due 2028 and $2.50 in cash.
The exchange offers and consent solicitations are being made to help FedEx and FedEx Freight optimize their respective capital structures after the separation. The offers are subject to certain conditions and will expire on February 6, 2025, unless extended or terminated.
Each series of new notes will have the same interest rate, interest payment dates, maturity date, and optional redemption provisions as the corresponding series of existing notes. The new notes will also be fully and unconditionally guaranteed by the same subsidiaries of FedEx that guarantee the existing notes of such series.
Today the company's shares have moved 0.4% to a price of $276.1. Check out the company's full 8-K submission here.
