FedEx Plans To Offer $2 Bln Of Senior Unsecured Notes - Quick Facts

(RTTNews) - Package delivery giant FedEx Corp. (FDX) announced Monday that it plans to offer $2 billion of senior unsecured notes. The offering and the final terms of the notes, including principal amount, interest rate and maturity, will depend on market and other conditions at the time of pricing, the company said.

The company noted that it plans to use proceeds from the offering to make payments under accelerated share repurchase agreements (ASRs) with Goldman, Sachs & Co. and JPMorgan Chase Bank, National Association, London Branch, which are part of the company's previously announced share repurchase program.

The effectiveness of the ASRs is conditioned upon the closing of the notes offering.

As per the terms of the ASRs, FedEx has agreed to repurchase an aggregate of $2 billion of its common stock from the banks, with an initial delivery of approximately 11.4 million shares based on current market prices. The final number of shares to be repurchased under each ASR will be based on a discount to the volume-weighted average stock price for Rule 10b-18 eligible transactions in FedEx's common stock during the term of the relevant transaction. Purchases under the ASRs are expected to be completed prior to the end of FedEx's current fiscal year on May 31, 2014.

FedEx noted that it expects to continue to repurchase shares in the open market from time to time, subject to market and other conditions.

J.P. Morgan Securities LLC, Goldman, Sachs & Co. and Morgan Stanley & Co. LLC are acting as joint book-running managers for the offering.