FTI Consulting details extending upsized $900 million revolver to 2027

By William Gullotti

Buffalo, N.Y., Nov. 22 – FTI Consulting, Inc. further detailed its amended and restated senior secured revolving facility with Bank of America, NA as administrative agent in an 8-K filing with the Securities and Exchange Commission on Tuesday.

As previously reported Nov. 21, the second amended and restated facility increases the revolving line of credit to $900 million from $550 million and extends the maturity date to Nov. 21, 2027 from Nov. 30, 2023.

The amended and restated agreement amends the incremental facility to permit increases to the size of the revolving line of credit or the making of new term loans, in each case, of up to $300 million. The $300 million may be further increased without limit so long as, among other conditions, the consolidated senior secured net leverage ratio does not exceed 3.5 to 1.0.

The revolver has a $125 million sublimit on alternative currency borrowings, excluding euros, sterling, Australian dollars, Canadian dollars, yen or Swiss francs. There is also a $50 million sublimit on letters of credit, a $40 million sublimit for swingline loans and a $125 million designated borrower sublimit.

The amendments further replaced Libor as the benchmark rate. Borrowings will now bear interest at SOFR, BBSY, CDOR, Saron, Tibor, Sonia or Euribor plus a margin ranging from 125 basis points to 200 bps.

FTI will also pay a commitment fee ranging from 20 bps to 35 bps.

The fee and margins are determined by the company’s consolidated total net leverage ratio.

The amended and restated revolver also amends some financial, investment, restricted payment and debt covenants to provide the company with more financial flexibility.

It further included pricing adjustments based on ESG-related KPIs, which may be put into effect upon agreement between the company and required lenders.

BofA Securities Inc., JPMorgan Chase Bank, NA, HSBC Securities (USA) Inc. and Truist Securities, Inc. are the joint lead arrangers and joint bookrunners.

Bank of America is the swingline lender, also acting a letter of credit issuer with the co-syndication agents, JPMorgan, HSBC Bank USA, NA and Truist Bank.

Proceeds may be used for working capital, capital expenditures and general corporate purposes, including permitted acquisitions and other investments.

FTI is a business advisory firm based in West Palm Beach, Fla.

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