FedEx Corp. (NYSE: FDX) has announced the early participation results of its exchange offers and consent solicitations for senior notes. As of the early participation date, the principal amounts of each series of existing notes that were validly tendered and not properly withdrawn were disclosed. For instance, the 3.400% notes due 2028 had $500,000,000 outstanding, with $278,782,000 tendered, representing 55.76% of the outstanding notes. Similarly, the 3.100% notes due 2029 had $1,000,000,000 outstanding, with $554,511,000 tendered, accounting for 55.45% of the outstanding notes.
Additionally, FedEx has amended the terms of the exchange offers applicable to eligible holders who validly tender their existing notes after the early participation date. For majority existing notes, eligible holders who tender their notes after the early participation date but before the expiration date will receive $1,000 principal amount of new notes for each $1,000 principal amount of existing notes tendered. On the other hand, for non-majority existing notes, eligible holders who tender their notes after the early participation date but before the expiration date will receive the total consideration, including the cash portion of the early participation payment.
The company also noted that the requisite number of consents had not yet been received to adopt the proposed amendments with respect to certain series of existing notes, referred to as the non-majority existing notes.
The exchange offers and consent solicitations are set to expire on February 6, 2025, and are being made in connection with the contemplated separation of the FedEx Freight business through the capital markets to create a new publicly traded company.
The press release also outlined that the new notes offered in the exchange offers have not been registered with the Securities and Exchange Commission (SEC) under the Securities Act or any state or foreign securities laws, and may not be offered or sold in the United States or to any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Today the company's shares have moved -0.5% to a price of $268.96. Check out the company's full 8-K submission here.
