The components of long-term debt (net of discounts and debt issuance costs), along with maturity dates for the years subsequent to May 31, 2026, are as follows (in millions):


				Amount Outstanding
	Interest Rate %		Year of Maturity	September 30, 2026		May 31, 2026

Unsecured debt:
Term loan facility	5.15	%	2029	$	499	$	599
Senior unsecured note	4.30	%	2029	994		993
Senior unsecured note	4.65	%	2031	992		991
Senior unsecured note	4.95	%	2033	693		693
Senior unsecured note	5.25	%	2036	988		988
Total unsecured debt				4,166		4,264
Finance lease liabilities				255		263
Total long-term debt				4,421		4,527
Current portion of long-term debt				45		43
Long-term debt, less current portion				$	4,376	$	4,484

In preparation for the Spin-Off, FedEx Freight issued $3.7 billion of senior unsecured notes (the “Notes”) and a $0.6 billion three-year delayed draw term loan (the “Term Loan Facility”). Substantially all of the proceeds from the Notes and Term Loan Facility were used to fund the distribution of approximately $4.1 billion in cash to FedEx at the closing of the Spin-Off. Obligations under the Notes and Term Loan Facility were jointly and severally guaranteed by FedEx and FedEx Freight, Inc. until the completion of the Spin-Off, when FedEx was automatically released from its guarantees and FedEx Custom Critical, Inc., a wholly owned subsidiary of FedEx Freight, joined FedEx Freight, Inc. as a guarantor of the Notes.

Long-term debt, exclusive of finance leases, had carrying values of $4.2 billion at September 30, 2026 and $4.3 billion at May 31, 2026, with estimated fair values of $4.0 billion at September 30, 2026 and $4.2 billion at May 31, 2026. The annualized weighted-average interest rate on long-term debt was 4.82% at September 30, 2026. The fair value of our long-term debt is classified as Level 2 within the fair value hierarchy.

CREDIT FACILITIES. On January 15, 2026, FedEx Freight entered into (a) a five-year revolving credit facility in an aggregate committed amount of $1.2 billion (including a letter of credit sub-facility in an aggregate face amount of up to $50 million) (the “Revolving Credit Facility”) and (b) the Term Loan Facility in the aggregate principal amount of $0.6 billion (together with the Revolving Credit Facility, the “Credit Facilities”). As of September 30, 2026, $500 million was outstanding under the Term Loan Facility and no amounts were outstanding under the Revolving Credit Facility.

The Credit Facilities require that we maintain, on a quarterly basis, a total leverage ratio of no more than (a) in the case of any fiscal quarter ending prior to January 1, 2027, 3.75:1.00 and (b) in the case of any fiscal quarter ending on or after January 1, 2027, 3.50:1.00. As of September 30, 2026, our total leverage ratio was 2.61:1.00.

The proceeds of the borrowings under the Revolving Credit Facility will be used for general corporate purposes and to pay fees and expenses related to the Spin-Off. Letters of credit issued under the Revolving Credit Facility will be used for general corporate purposes.

On October 7, 2026, we entered into amendments to the Credit Facilities. Pursuant to the amendments, we may elect to borrow under the Revolving Credit Facility at a Daily Simple SOFR rate with a same-day borrowing notice. Additionally, the amendments revise the definition of consolidated EBITDA for purposes of calculating the total leverage ratio to permit the add-back of certain non-cash charges associated with share-based employee compensation.