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FedEx Freight Holding Co. is marketing its first investment-grade dollar bonds ahead of the company’s planned June 1 spinoff from FedEx Corp.
The Jan. 27 four-part offering includes notes maturing in three to 10 years, according to a person familiar with the matter. Initial price talk on the longest-tenor note is around 1.4 percentage points above Treasuries, the person said, asking not to be identified because they are not authorized to speak publicly.
Proceeds will be paid to FedEx as part of the consideration for the spinoff, the company said in a statement.
FedEx said in December 2024 it would separate its freight business as part of a broader streamlining effort.
The U.S. investment-grade bond market is on track for a record January, starting Jan. 27 roughly $11 billion shy of the $189 billion total reached in 2024 as issuers capitalize on historically tight spreads.
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, and FedEx Freight ranks No. 1 on TT’s LTL sector list.
Also, FedEx ranks No. 3 on the TT Top 50 list of the largest global freight carriers, and FedEx Logistics ranks No. 43 on the TT Top 100 logistics companies list.
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