By Rebecca Melvin
Princeton, N.J., July 28 - FTI Consulting Inc. priced an upsized $150 million of 3.75% convertible securities, with an initial conversion premium of 30%. There is no greenshoe.
Pricing for the seven-year bonds came richer than coupon talk of 3.875% to 4.125% and at the middle of talk for an initial conversion premium of 27.50% to 32.50%.
Goldman Sachs & Co. and Banc of America Securities were joint bookrunners of the Rule 144A deal, which was originally going to be for $125 million, with a $25 million greenshoe. The deal priced after markets closed Thursday.
The convertible notes are part of a $300 million offering of long-term debt, with a concurrent offering of $175 million of senior notes due 2012.
The convertible notes are non-callable for life and there are no puts. They will have net share settlement plus contingent conversion. Dividend protection will be in the form of a conversion ratio adjustment if the company initiates a cash dividend.
The Annapolis, Md.-based management services company plans to use proceeds to repay existing term loan debt, to repurchase outstanding shares and for general corporate purposes, including potential acquisitions.
| Issuer: | FTI Consulting Inc.
|
| Issue: | Convertible notes
|
| Bookrunners: | Goldman Sachs & Co. and Banc of America Securities
|
| Amount: | $150 million
|
| Greenshoe: | None
|
| Maturity: | July 15, 2012
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 30%
|
| Conversion price: | $31.25
|
| Conversion ratio: | 31.9980
|
| Net share settlement: | Yes
|
| Contingent conversion: | Yes
|
| Dividend protection: | Yes
|
| Call: | Non-callable for life
|
| Price talk: | 3.875-4.125%, up 27.50-32.50%
|
| Pricing date: | July 28, after the close
|
| Distribution: | Rule 144A
|
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