FedEx Issues Bonds with Parent Company Guarantee Ahead of Freight Spin-Off

FedEx Corporation (NYSE: FDX) on February 5, 2026, entered into a guarantee agreement under which it will provide a parent company guarantee for $3.7 billion (approximately KRW 5.4 trillion) of senior unsecured notes issued by its subsidiary, FedEx Freight Holding Company. The guarantee covers full and timely payment of principal and interest on four new tranches of notes maturing between 2029 and 2036. It is structured to support the planned spin-off and internal reorganization of the FedEx Freight business and remains effective even in potential default scenarios. The guarantee will automatically terminate upon completion of the FedEx Freight separation or legal extinguishment of the notes, subject to certain conditions.

At its Investor Day on February 12, FedEx reaffirmed June 1 as the separation date for FedEx Freight as part of a mid-term strategic plan through 2029 focused on revenue growth, margin expansion, network optimization, and enhancement of digital and AI capabilities. The following day, February 13, the board declared a quarterly dividend of $1.45 per share, maintaining its shareholder-return policy.

Headquartered in Tennessee, FedEx is a global diversified logistics company generating about $90 billion (KRW 130 trillion) in annual revenues from transportation, e-commerce and business services worldwide. FedEx Freight, a leading operator in the North American less-than-truckload (LTL) market, is being prepared for spin-off in line with industry-wide efforts to simplify corporate structures and improve capital efficiency.