FTI Consulting plans to redeem 6% convertibles due 2022 via new issue

By Wendy Van Sickle

Columbus, Ohio, Aug. 14 – FTI Consulting Inc. plans to redeem its outstanding $300 million of 6% convertible notes due 2022 with proceeds of an offering of $250 million of new five-year convertibles, along with cash on hand, according to a news release.

FTI plans to price the new convertibles after the market close on Wednesday. Price talk is for a coupon of 1.5% to 2% and an initial conversion premium of 30% to 35%.

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.

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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