8-KOther EventsExhibits & Filings

FEDEX CORP 8-K Report, Corporate Update (Jan 16, 2009)

Filed January 16, 2009For Securities:FDX

Summary

FedEx Corporation (FDX) filed this Form 8-K on January 16, 2009, to report on the issuance of new debt. The company successfully raised $1 billion by selling notes due in 2014 and 2019. Specifically, $250 million in 7.375% Notes due 2014 and $750 million in 8.000% Notes due 2019 were issued. This debt issuance is significant in the context of the prevailing economic conditions of early 2009. Investors should note that the filing also serves to incorporate these debt issuances into existing registration statements, indicating a strategic move by FedEx to strengthen its financial position and maintain liquidity. The details of the underwriting agreement and the supplemental indentures are provided as exhibits.

Key Highlights

  • 1FedEx Corp issued and sold $1 billion in aggregate principal amount of new notes.
  • 2$250 million of 7.375% Notes due 2014 were issued.
  • 3$750 million of 8.000% Notes due 2019 were issued.
  • 4The debt issuance occurred on January 16, 2009.
  • 5The filing incorporates these notes into a Form S-3 registration statement.
  • 6Key exhibits include the Underwriting Agreement and Supplemental Indentures.

Frequently Asked Questions

While the 8-K doesn't explicitly state the reason, debt issuances like this are typically done to raise capital for general corporate purposes, manage liquidity, refinance existing debt, or fund strategic initiatives, especially during uncertain economic periods such as early 2009.

FedEx issued two series of notes: $250 million of 7.375% Notes due 2014 and $750 million of 8.000% Notes due 2019. The interest rates and maturity dates are specified.

Incorporating the notes into a Form S-3 registration statement means that these newly issued debt securities are now formally registered with the SEC under a previously filed shelf registration. This allows FedEx to offer and sell these securities efficiently.

The underwriters for this issuance included SunTrust Robinson Humphrey, Inc., Goldman, Sachs & Co., and J.P. Morgan Securities Inc., acting as representatives for other underwriters.