FTI Consulting talks $250 million five-year convertible notes to yield 1.5%-2%, up 30%-35%

By Abigail W. Adams

Portland, Me., Aug. 14 – FTI Consulting Inc. plans to price $250 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 1.5% to 2% and an initial conversion premium of 30% to 35%, according to a market source.

J.P. Morgan Securities LLC and BofA Merrill Lynch are joint bookrunners for the Rule 144A deal, which carries a greenshoe of $37.5 million. The notes have no call or put options.

They are contingently convertible until May 15, 2023 and freely convertible thereafter.

Proceeds will be used to redeem the outstanding $300 million of the company’s 6% convertible notes due 2022.

A portion of the proceeds may also be used to repurchase $25 million of common stock from purchasers of the convertible notes.

FTI Consulting is a Washington, D.C.-based global business advisory firm.

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