US FedEx sells USD 1.6 billion of notes
FedEx Corp has sold USD 1.6 billion of debt in three parts, market sources said, in a transaction that will help the global delivery company pay for its first-quarter acquisition of copy-center operator Kinko’s.
The air express delivery group, based in Memphis, Tennessee, used short-term borrowings to help fund the USD 2.4 billion acquisition in February, and will pay down those borrowings with the proceeds from these notes, according to a statement from Moody’s Investors Service on Monday.
FedEx sold USD 600 million of one-year floating-rate notes at a spread of three-month Libor plus 0.28 percentage point, market sources said.
FedEx also priced three- and five-year notes.
The USD 500 million of three-year notes were priced with a coupon of 2.65 percent and sold for 99.925 cents on the dollar, to yield 2.676 percent, a spread of 0.78 percentage point over Treasuries.
The USD 500 million of five-year notes were priced with a coupon of 3.5 percent, at 99.904 cents on the dollar, to yield 3.52 percent, a spread of 0.83 percentage points over Treasuries.
Moody’s said it rated the senior unsecured notes “Baa2,” its second lowest investment-grade rating.
