FEDEX CORPFDX
FEDEX CORP Debt Disclosure
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS
The components of long-term debt (net of discounts and debt issuance costs), along with maturity dates for the years subsequent to May 31, 2025, are as follows (in millions):
| May 31, | |||||||||||||||||||||||
| Interest Rate % | Maturity | 2025 | 2024 | ||||||||||||||||||||
| Senior secured debt: | |||||||||||||||||||||||
| 1.875 | 2034 | $ | 729 | $ | 780 | ||||||||||||||||||
| Senior unsecured debt: | |||||||||||||||||||||||
| 3.25 | 2026 | 749 | 748 | ||||||||||||||||||||
| 3.40 | 2028 | 498 | 498 | ||||||||||||||||||||
| 4.20 | 2029 | 398 | 398 | ||||||||||||||||||||
3.10-4.25 | 2030 | 1,738 | 1,739 | ||||||||||||||||||||
| 2.40 | 2031 | 992 | 992 | ||||||||||||||||||||
| 4.90 | 2034 | 496 | 497 | ||||||||||||||||||||
| 3.90 | 2035 | 495 | 495 | ||||||||||||||||||||
| 3.25 | 2041 | 740 | 740 | ||||||||||||||||||||
3.875-4.10 | 2043 | 985 | 986 | ||||||||||||||||||||
| 5.10 | 2044 | 742 | 743 | ||||||||||||||||||||
| 4.10 | 2045 | 641 | 642 | ||||||||||||||||||||
4.55-4.75 | 2046 | 2,462 | 2,464 | ||||||||||||||||||||
| 4.40 | 2047 | 736 | 737 | ||||||||||||||||||||
| 4.05 | 2048 | 986 | 987 | ||||||||||||||||||||
| 4.95 | 2049 | 835 | 836 | ||||||||||||||||||||
| 5.25 | 2050 | 1,225 | 1,227 | ||||||||||||||||||||
| 4.50 | 2065 | 245 | 246 | ||||||||||||||||||||
| 7.60 | 2098 | 237 | 237 | ||||||||||||||||||||
| Euro senior unsecured debt: | |||||||||||||||||||||||
| 0.45 | 2026 | 569 | 542 | ||||||||||||||||||||
| 1.625 | 2027 | 1,422 | 1,353 | ||||||||||||||||||||
| 0.45 | 2029 | 679 | 647 | ||||||||||||||||||||
| 1.30 | 2032 | 566 | 539 | ||||||||||||||||||||
| 0.95 | 2033 | 734 | 699 | ||||||||||||||||||||
| Total senior unsecured debt | 19,170 | 18,992 | |||||||||||||||||||||
| Finance lease obligations | 680 | 431 | |||||||||||||||||||||
| 20,579 | 20,203 | ||||||||||||||||||||||
| Less current portion | 1,428 | 68 | |||||||||||||||||||||
| $ | 19,151 | $ | 20,135 | ||||||||||||||||||||
Interest on our U.S. dollar fixed-rate notes is paid semi-annually. Interest on our euro fixed-rate notes is paid annually. The weighted-average interest rate on long-term debt was 3.5% as of May 31, 2025. Long-term debt, including current maturities and exclusive of
finance leases, had estimated fair values of $17.2 billion at May 31, 2025 and $17.5 billion at May 31, 2024. The estimated fair values were determined based on quoted market prices and the current rates offered for debt with similar terms and maturities. The fair value of our long-term debt is classified as Level 2 within the fair value hierarchy. This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly.
We have a shelf registration statement filed with the SEC that allows us to sell, in one or more future offerings, any combination of our unsecured debt securities and common stock and allows pass-through trusts formed by Federal Express to sell, in one or more future offerings, pass-through certificates.
Federal Express has issued $970 million of Pass-Through Certificates, Series 2020-1AA (the “Certificates”) with a fixed interest rate of 1.875% due in February 2034 utilizing pass-through trusts. The Certificates are secured by 19 Boeing aircraft with a net book value of $1.6 billion at May 31, 2025. The payment obligations of Federal Express in respect of the Certificates are fully and unconditionally guaranteed by FedEx.
The following table sets forth the future scheduled principal payments due by fiscal year on our long-term debt (in millions):
| Debt Principal | |||||
| 2026 | $ | 1,371 | |||
| 2027 | 1,476 | ||||
| 2028 | 552 | ||||
| 2029 | 1,135 | ||||
| 2030 | 1,802 | ||||
| Thereafter | 13,777 | ||||
| Subtotal | 20,113 | ||||
| Discount and debt issuance costs | $ | (214) | |||
| Total debt | $ | 19,899 | |||
Exchange Offers and Consent Solicitations
In January 2025, in connection with the planned separation of FedEx Freight, we commenced offers to exchange any and all of $16.2 billion of FedEx’s outstanding senior notes (22 series in total) for new notes to be issued by FedEx. Concurrently with the exchange offers, we also solicited consents from eligible holders of such notes to adopt certain proposed amendments to each of the indentures governing such notes to provide for the automatic and unconditional release and discharge of the guarantee of FedEx Freight with respect to that series of notes at the time FedEx Freight ceases to be a subsidiary of FedEx in connection with the planned separation (the “Proposed Amendments”).
We completed the exchange offers and consent solicitations in February 2025. An aggregate of $10.7 billion principal amount of U.S. dollar-denominated notes and €940 million principal amount of euro-denominated notes were validly tendered and not properly withdrawn, and the requisite consents were received to adopt the Proposed Amendments with respect to an aggregate of $15.9 billion principal amount of our outstanding senior notes (21 of the 22 series in scope). The new notes issued in connection with the exchange offer have the same interest rate, interest payment dates, maturity date, and optional redemption provisions as the corresponding series of existing notes; provided that (a) the methodology for calculating any make-whole redemption price for the USD-denominated notes will reflect the SIFMA model provisions and (b) FedEx will be permitted to deliver notices of redemption that are subject to one or more conditions precedent with respect to the notes.
Credit Agreements
We have a $1.75 billion three-year credit agreement (the “Three-Year Credit Agreement”) and a $1.75 billion five-year credit agreement (the “Five-Year Credit Agreement” and together with the Three-Year Credit Agreement, the “Credit Agreements”). The Three-Year Credit Agreement and the Five-Year Credit Agreement expire in March 2027 and March 2029, respectively, and each has a $125 million letter of credit sublimit. The Credit Agreements are available to finance our operations and other cash flow needs. As of May 31, 2025, no amounts were outstanding under the Credit Agreements, no commercial paper was outstanding, and we had $250 million of the letter of credit sublimit unused under the Credit Agreements. Outstanding commercial paper reduces the amount available to borrow under the Credit Agreements.
Our Credit Agreements contain a financial covenant requiring us to maintain a ratio of debt (excluding up to $500 million of unrestricted cash and cash equivalents) to consolidated earnings (excluding noncash retirement plans mark-to-market adjustments, noncash pension service costs, noncash asset impairment charges, business optimization and restructuring expenses, and pro forma cost savings and synergies associated with an acquisition) before interest, taxes, depreciation, and amortization (“adjusted EBITDA”)
of not more than 3.5 to 1.0, calculated as of the last day of each fiscal quarter on a rolling four-quarters basis. The aggregate amount of adjustments for business optimization and restructuring expenses and pro forma cost savings and synergies associated with an acquisition may not exceed 10% of adjusted EBITDA (calculated after giving effect to any such addback and such cap and all other permitted addbacks and adjustments) in any period. Additionally, following the consummation of an acquisition for which the aggregate cash consideration is at least $250 million, FedEx may elect to increase the ratio to 4.0 to 1.0 with respect to the last day of the fiscal quarter during which such acquisition is consummated and the last day of each of the immediately following three consecutive fiscal quarters, provided that there must be at least two consecutive fiscal quarters between such elections during which the ratio is 3.5 to 1.0. The ratio of our debt to adjusted EBITDA was 1.9 to 1.0 at May 31, 2025.
The financial covenant discussed above is the only significant restrictive covenant in the Credit Agreements. The Credit Agreements contain other customary covenants that do not, individually or in the aggregate, materially restrict the conduct of our business. We are in compliance with the financial covenant and all other covenants in the Credit Agreements and do not expect the covenants to affect our operations, including our liquidity or expected funding needs. If we failed to comply with the financial covenant or any other covenants in the Credit Agreements, our access to financing could become limited. Our commercial paper program is backed by unused commitments under the Credit Agreements.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 21, 2025 | Showing above |
| 2024 | Jul 15, 2024 | |
| 2023 | Jul 17, 2023 | |
| 2022 | Jul 18, 2022 | |
| 2021 | Jul 19, 2021 | |
| 2020 | Jul 20, 2020 | |
| 2019 | Jul 16, 2019 | |
| 2018 | Jul 16, 2018 | |
| 2017 | Jul 17, 2017 | |
| 2016 | Jul 18, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.