FedEx Sees Over $5B in Debt Tendered Early

By Ahmed Jamerson • Saturday, July 11 13:01 • Permanent Link

FedEx said holders of a large chunk of its debt accepted its cash tender offers before the early deadline, with tendered notes already totaling billions of dollars across 19 series.

At the July 9 early tender time, investors had validly tendered $5.10 billion of principal across the notes listed in the offer, well above FedEx’s $4.15 billion cap. That means the company expects to take up all of the notes in the first 12 priority levels and only a prorated portion of the 5.100% notes due 2044, which sit at priority level 13.

The biggest amounts tendered came from FedEx’s longer-dated issues: 5.250% notes due 2050: $436.54 million tendered, including $40.82 million of one series and $395.72 million of another 4.550% notes due 2046: $594.01 million tendered 4.750% notes due 2045: $590.43 million tendered 2.400% notes due 2031: $507.70 million tendered * 4.400% notes due 2047: $463.73 million tendered

Tendering was also heavy in the 3.250% notes due 2041, which drew $436.82 million, and the 4.050% notes due 2048, which drew $491.17 million.

By contrast, the lowest-priority bonds saw no expected acceptance. FedEx said the 3.100% notes due 2029, 5.250% notes due 2050, 3.400% notes due 2028, 4.250% notes due 2030, 4.200% notes due 2028 and 4.900% notes due 2034 will not be accepted for purchase.

Within the accepted group, FedEx expects to take the full amount tendered in the 4.500% notes due 2065, 3.250% notes due 2041, 4.050% notes due 2048, 3.875% notes due 2042, 4.100% notes due 2045, 4.100% notes due 2043, 4.400% notes due 2047, 4.550% notes due 2046, 4.750% notes due 2045, 2.400% notes due 2031, 4.950% notes due 2048 and 3.900% notes due 2035.

FedEx said it will announce the total consideration later in the day after the price determination time, with accepted holders also receiving an early tender premium of $30 per $1,000 principal amount, plus accrued and unpaid interest through July 14, 2026. As a result of these announcements, the company's shares have moved 1.24% on the market, and are now trading at a price of $314.69. For more information, read the company's full 8-K submission here.

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