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FTI Consulting closes $550 million senior secured revolver due 2020
By Susanna Moon
Chicago, June 30 – FTI Consulting, Inc. obtained a $550 million senior secured revolving line of credit due June 26, 2020 with Bank of America Merrill Lynch, J.P. Morgan Securities LLC and HSBC Bank USA, NA as joint lead arrangers and joint book managers, according to an 8-K filing with the Securities and Exchange Commission.
Interest on the loans is initially Libor plus 175 basis points with an unused fee of 30 bps. After that, it will range from Libor plus 137.5 bps to 200 bps, based on leverage, and the unused fee will be 25 bps to 35 bps.
Proceeds will be used for working capital, capital expenditures and general corporate purposes, including to repay or redeem existing debt and for acquisitions.
The company said it intends to retire its $400 million 6¾% notes due 2020 by Oct. 1 using a combination of borrowings under the credit facility and cash on hand.
FTI may add commitments by upsizing the revolver or making additional term loans, up to a maximum of $100 million plus unlimited amounts as long as the consolidated total leverage ratio is no more than 3.5 times.
Bank of America, NA is the administrative agent. JPMorgan Chase Bank, NA is the co-syndication agent and HSBC Bank USA, NA are the co-syndication agents.
The new credit agreement dated June 26 replaces the agreement dated Nov. 27, 2012 with Bank of America, NA as administrative agent for a five-year $350 million senior secured revolving line of credit. There were no outstanding revolving borrowings under the 2012 credit agreement at closing.
FTI is a business advisory firm based in West Palm Beach, Fla.
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