FedEx Prepares for Freight Spin-Off
FedEx Corporation filed an 8-K on October 31, 2025, detailing amendments to its $3.5 billion credit agreements in anticipation of the planned spin-off of FedEx Freight, Inc. by June 2026.
Key investor takeaways:
- Business Change: FedEx Freight will be released from guarantees under the Credit Agreements upon the spin-off.
- Covenant Relief: The debt/Adjusted EBITDA ratio covenant (max 3.5x) is modified to exclude debt related to the spin-off. Up to $600 million in transaction costs/synergies are excluded from Adjusted EBITDA ca