FedEx Issues New Debt Notes

Ticker: FDX · Form: 8-K · Filed: 2024-09-03T00:00:00.000Z

Sentiment: neutral

Topics: debt-issuance, financing, notes

Related Tickers: FDX

TL;DR

FedEx just dropped a bunch of debt notes with varying rates and maturities. Watch those interest payments!

AI Summary

On September 3, 2024, FedEx Corp. filed an 8-K report detailing various debt issuances. These include notes due in 2025, 2027, 2029, 2031, and 2033, with varying interest rates such as 0.450%, 1.625%, 0.450%, 1.300%, and 0.950% respectively. The filing also mentions common stock with a par value of $0.10 per share.

Why It Matters

FedEx is raising capital through various debt issuances, which could impact its financial leverage and future investment capacity.

Risk Assessment

Risk Level: medium — The issuance of multiple debt instruments increases FedEx's financial leverage and potential interest payment obligations.

Key Numbers

0.450% — Interest Rate (Applies to notes due 2025 and 2029)
1.625% — Interest Rate (Applies to notes due 2027)
1.300% — Interest Rate (Applies to notes due 2031)
0.950% — Interest Rate (Applies to notes due 2033)
$0.10 — Par Value (Common stock par value)

Key Players & Entities

FedEx Corp. (company) — Filer of the 8-K report
0.450% Notes Due 2025 (dollar_amount) — Debt issuance with specific interest rate and maturity
1.625% Notes Due 2027 (dollar_amount) — Debt issuance with specific interest rate and maturity
0.450% Notes Due 2029 (dollar_amount) — Debt issuance with specific interest rate and maturity
1.300% Notes Due 2031 (dollar_amount) — Debt issuance with specific interest rate and maturity
0.950% Notes Due 2033 (dollar_amount) — Debt issuance with specific interest rate and maturity
$0.10 (dollar_amount) — Par value of common stock

FAQ

What is the total amount of debt being issued by FedEx?

The filing does not specify the total principal amount of the debt issuances, only the interest rates and maturity dates for several tranches of notes.

What is the purpose of these debt issuances?

The filing does not explicitly state the purpose of these debt issuances, but they are typically for general corporate purposes, including funding operations, investments, or refinancing existing debt.

When were these debt notes issued?

The filing was made on September 3, 2024, and lists various notes with maturity dates in 2025, 2027, 2029, 2031, and 2033, indicating these are recent issuances or amendments.

What are the different interest rates on the new debt?

The interest rates mentioned are 0.450% (for notes due 2025 and 2029), 1.625% (for notes due 2027), 1.300% (for notes due 2031), and 0.950% (for notes due 2033).

Does this filing relate to any equity changes?

Yes, the filing mentions common stock with a par value of $0.10 per share, indicating it is part of the company's capital structure alongside the debt issuances.

Filing Stats: 690 words · 3 min read · ~2 pages · Grade level 10.1 · Accepted 2024-09-03 16:15:17

Key Financial Figures

$0.10 — ch registered Common Stock, par value $0.10 per share FDX New York Stock Exchan

Filing Documents

fdx-20240903.htm (8-K) — 59KB
fdx-ex99_1.htm (EX-99.1) — 1899KB
0000950170-24-102826.txt ( ) — 2191KB
fdx-20240903.xsd (EX-101.SCH) — 63KB
fdx-20240903_htm.xml (XML) — 10KB

02. Results of Operations and Financial Condition

Item 2.02. Results of Operations and Financial Condition. In the fourth quarter of fiscal 2023, FedEx Corporation ("FedEx") announced one FedEx, a consolidation plan to bring FedEx Ground Package System, Inc. ("FedEx Ground") and FedEx Corporate Services, Inc. ("FedEx Services") into Federal Express Corporation ("Federal Express"), becoming a single company operating a unified, fully integrated air-ground express network under the respected FedEx brand. On June 1, 2024, FedEx Ground and FedEx Services were merged into Federal Express. FedEx Freight, Inc. ("FedEx Freight") continues to provide less-than-truckload freight transportation services as a separate subsidiary. Beginning in the first quarter of fiscal 2025, Federal Express and FedEx Freight will represent our major service lines and constitute our reportable segments. FedEx Custom Critical, Inc. ("FedEx Custom Critical") will be included in the FedEx Freight segment instead of the Federal Express segment beginning in fiscal 2025. Attached as Exhibit 99.1 and incorporated herein by reference are annual and quarterly financial and operating results for fiscal 2024 and fiscal 2023 recast to reflect this presentation. SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 99.1 Unaudited historical financial and operating results recast for one FedEx segment presentation . 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FedEx Corporation Date: September 3, 2024 By: /s/ Guy M. Erwin II Guy M. Erwin II Corporate Vice President – Chief Accounting Officer