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FedEx Freight secures new credit facilities for spin-off

Story Highlights
  • FedEx Freight secured $1.8 billion in new credit facilities to fund its spin-off and future standalone operations.
  • Director Stephen E. Gorman will leave FedEx’s board to join the new FedEx Freight board, signaling an orderly governance transition.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
FedEx Freight secures new credit facilities for spin-off

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FedEx ( (FDX) ) has provided an announcement.

In preparation for the planned spin-off of FedEx Freight Holding Company, Inc. from FedEx Corporation, FedEx Freight on January 15, 2026 entered into two new credit facilities: a $1.2 billion five-year revolving credit facility and a $600 million three-year delayed draw term loan facility, both in U.S. dollars and tied to FedEx Freight’s credit ratings. The facilities, which become fully available only upon or in close anticipation of the spin-off, are designed to fund a cash distribution to FedEx, support spin-off related transactions and expenses, and provide ongoing liquidity for general corporate purposes, including acquisitions, while imposing leverage covenants, negative pledges, and other customary restrictions that will frame the capital structure and financial discipline of the standalone LTL business. In a related governance move dated January 12, 2026, FedEx director Stephen E. Gorman informed the board he will resign from FedEx’s board to join the board of the newly spun-off FedEx Freight, with the company noting there were no disagreements regarding FedEx’s operations or policies, underscoring an orderly transition as the freight unit moves toward independence.

The most recent analyst rating on (FDX) stock is a Hold with a $280.00 price target. To see the full list of analyst forecasts on FedEx stock, see the FDX Stock Forecast page.

Spark’s Take on FDX Stock

According to Spark, TipRanks’ AI Analyst, FDX is a Outperform.

FedEx’s overall stock score reflects strong earnings performance and positive technical indicators, despite some valuation concerns. The company’s strategic initiatives and resilience in overcoming operational challenges contribute to a positive outlook. However, the overbought technical signals and moderate dividend yield suggest caution in the short term.

To see Spark’s full report on FDX stock, click here.

More about FedEx

FedEx Corporation is a global transportation and logistics company whose businesses include express delivery, ground and freight services, and related supply-chain solutions for commercial and industrial customers worldwide. FedEx Freight operates as the less-than-truckload (LTL) segment within FedEx, focusing on regional and long-haul freight services in North America and is planned to be separated into an independent company through a spin-off.

Average Trading Volume: 1,661,294

Technical Sentiment Signal: Buy

Current Market Cap: $73.72B

Learn more about FDX stock on TipRanks’ Stock Analysis page.

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