FedEx (NYSE:FDX) has made it clear that the new notes issued as part of the exchange offers will be guaranteed by the same subsidiaries that currently guarantee the existing notes. With a current ratio of 1.23 and a debt-to-equity ratio of 1.41, InvestingPro subscribers can access detailed analysis of FedEx’s financial structure through comprehensive Pro Research Reports, available for over 1,400 US stocks. This press release is based on a press release statement and does not constitute an offer to sell or a solicitation to buy any securities. The new notes have not been registered with the SEC and are being offered only to qualified institutional buyers and non-U.S. persons in compliance with applicable laws.
FedEx has made it clear that the new notes issued as part of the exchange offers will be guaranteed by the same subsidiaries that currently guarantee the existing notes. With a current ratio of 1.23 and a debt-to-equity ratio of 1.41, InvestingPro subscribers can access detailed analysis of FedEx’s financial structure through comprehensive Pro Research Reports, available for over 1,400 US stocks. This press release is based on a press release statement and does not constitute an offer to sell or a solicitation to buy any securities. The new notes have not been registered with the SEC and are being offered only to qualified institutional buyers and non-U.S. persons in compliance with applicable laws.
FedEx’s exchange offers include a variety of senior notes with maturity dates ranging from 2028 to 2065. The offers allow eligible holders to exchange existing notes for new notes with the same interest rates and maturity dates, along with an early participation payment for those who tender their notes by 5:00 p.m., New York City time, on January 22, 2025. The total consideration for each $1,000 principal amount of existing notes includes the principal amount of new notes and an additional cash payment.
The exchange offers and consent solicitations are being conducted in accordance with the terms outlined in the confidential offering memorandum and consent solicitation statement, dated January 7, 2025. These offers will expire on February 6, 2025, unless extended or terminated by FedEx. The settlement date for each exchange offer and consent solicitation will occur shortly after the expiration date.
FedEx has made it clear that the new notes issued as part of the exchange offers will be guaranteed by the same subsidiaries that currently guarantee the existing notes. With a current ratio of 1.23 and a debt-to-equity ratio of 1.41, InvestingPro subscribers can access detailed analysis of FedEx’s financial structure through comprehensive Pro Research Reports, available for over 1,400 US stocks. This press release is based on a press release statement and does not constitute an offer to sell or a solicitation to buy any securities. The new notes have not been registered with the SEC and are being offered only to qualified institutional buyers and non-U.S. persons in compliance with applicable laws.
In other recent news, FedEx has made significant strategic decisions, including the spin-off of its Less-Than-Truckload (LTL) division, a move that Stifel and other firms believe could unlock substantial value. Despite the company’s earnings not meeting all estimates, FedEx maintains solid fundamentals with a P/E ratio of 16.9x and an EBITDA of $10.9 billion in the last twelve months. The company revised its annual EPS guidance downward, prompting 10 analysts to revise their earnings estimates downward for the upcoming period.
Several financial firms have adjusted their targets for FedEx following these developments. Stifel raised its FedEx target to $368, maintaining a buy rating. TD Cowen raised its target to $337, BMO Capital to $330, and Bernstein SocGen Group modestly increased FedEx’s target to $320. On the other hand, Stephens reduced its FedEx target to $345, but maintained an overweight rating.
Loop Capital upgraded FedEx to Buy, significantly raising the target to $365, factoring in operational efficiencies and anticipated benefits from the LTL Freight business spinoff. These recent developments provide investors with a snapshot of the changing landscape for FedEx.
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