DivestmentMay 13, 2026, 04:09 PM
FedEx Board Approves Freight Spin-off; FDXF NYSE Trading June 1
AI Summary
FedEx's Board of Directors has approved the previously announced spin-off of FedEx Freight, declaring a pro rata dividend of 80.1% of FedEx Freight's outstanding common stock to FedEx stockholders. Following the separation, FedEx Freight common stock will commence trading on the New York Stock Exchange under the symbol "FDXF" on June 1, 2026. FedEx Freight will also pay a $4.1 billion cash dividend to FedEx prior to the separation, funded by a recent $3.7 billion senior notes offering and term loan borrowings. FedEx will retain a 19.9% stake in FedEx Freight, which it plans to dispose of within 24 months.
Key Highlights
- FedEx Board approved the spin-off of FedEx Freight Holding Company, Inc.
- FedEx stockholders will receive one share of FedEx Freight for every two shares of FedEx common stock held.
- FedEx Freight common stock will begin trading on the NYSE under the symbol "FDXF" on June 1, 2026.
- FedEx will retain 19.9% of FedEx Freight common stock, to be disposed of within 24 months.
- FedEx Freight will pay a cash dividend of approximately $4.1 billion to FedEx prior to the separation.
- The cash dividend is funded by a $3.7 billion senior notes offering and delayed-draw term loan facility.
- FedEx announced its intention to redeem €354,878,000 of its 1.300% notes due 2031.
- FedEx Freight generated $8.9 billion revenue and $1.4 billion operating income in fiscal year 2025.