New Issue: FedEx prices $2 billion of 10-year and 30-year notes

By Cristal Cody

Eureka Springs, Ark., March 21 – FedEx Corp. sold $2 billion of notes (Baa2/BBB) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $750 million of 3.25% 10-year notes with a spread of 135 basis points over Treasuries. The notes priced at 99.796 to yield 3.274%.

FedEx also priced $1.25 billion of 4.55% 30-year notes at 99.561 to yield 4.577%, or 185 bps over Treasuries.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., BofA Merrill Lynch, Mizuho Securities USA Inc., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC were the lead managers.

Proceeds will be used for working capital and general corporate purposes, which includes the redemption or prepayment and defeasance of the underlying debt of certain leveraged operating leases, including the redemption of $245 million outstanding of tax-exempt Alliance Airport, Inc. 4.85% term bonds due 2021 and prepayment and defeasance of $238 million outstanding of tax-exempt Indianapolis Airport Authority 5.1% term bonds due 2017, and for share repurchases.

FedEx is a Memphis, Tenn.-based package and freight transportation company.

Issuer:	FedEx Corp.
Guarantors:	Federal Express Corp.; FedEx Ground Package System, Inc.; FedEx Freight Corp.; FedEx Freight, Inc.; FedEx Corporate Services, Inc.; FedEx TechConnect, Inc.; FedEx Office and Print Services, Inc.; Federal Express Europe, Inc.; Federal Express Holdings SA, Federal Express International, Inc.
Amount:	$2 billion
Securities:	Notes
Bookrunners:	Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., BofA Merrill Lynch, Mizuho Securities USA Inc., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc., Wells Fargo Securities, LLC
Co-managers:	HSBC Securities (USA) Inc., ING Financial Markets LLC, Morgan Stanley & Co. LLC, Regions Securities LLC, Samuel A. Ramirez & Co., Inc.
Trade date:	March 21
Settlement date:	March 24
Ratings:	Moody’s: Baa2
	Standard & Poor’s: BBB
Distribution:	SEC registered
10-year notes
Amount:	$750 million
Maturity:	April 1, 2026
Coupon:	3.25%
Price:	99.796
Yield:	3.274%
Spread:	135 bps over Treasuries
Call feature:	Make-whole prior to Jan. 1, 2026 at Treasuries plus 20 bps; on or after Jan. 1, 2026 at par
30-year notes
Amount:	$1.25 billion
Maturity:	April 1, 2046
Coupon:	4.55%
Price:	99.561
Yield:	4.577%
Spread:	185 bps over Treasuries
Call feature:	Make-whole prior to Oct. 1, 2045 at Treasuries plus 30 bps; on or after Oct. 1, 2045 at par

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