By Abigail W. Adams
Portland, Me., Aug. 16 – FTI Consulting, Inc. priced an upsized $275 million of five-year convertible notes after the market close on Wednesday at par with a coupon of 2% and an initial conversion premium of 32.5%, according to company news release.
Pricing came at the cheap end of talk for a coupon of 1.5% to 2% and at the midpoint of talk for 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 an upsized greenshoe of $41.25 million.
The initial size of the deal was $250 million with a greenshoe of $37.5 million.
The notes are non-callable. They are putable upon a fundamental change.
They are contingently convertible until May 15, 2023 and freely convertible thereafter.
Proceeds from the offering are expected to be $267.8 million or $308 million if the greenshoe is exercised in full.
Proceeds will be used with cash on hand to redeem the outstanding $300 million of the company’s 6% convertible notes due 2022.
Proceeds will also be used to repurchase $15 million of its common stock through one of the initial purchasers of the convertible notes for $76.51 per share.
FTI Consulting is a Washington, D.C.-based global business advisory firm.
| Issuer: | FTI Consulting, Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $275 million
|
| Greenshoe: | $41.25 million
|
| Maturity: | Aug. 15, 2023
|
| Bookrunners: | J.P. Morgan Securities LLC and BofA Merrill Lynch
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $101.38
|
| Conversion rate: | 9.8643
|
| Call options: | Non-callable
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Aug. 15
|
| Settlement date: | Aug. 20
|
| Talk: | Coupon of 1.5% to 2% and an initial conversion premium of 30% to 35%
|
| Stock symbol: | NYSE: FCN
|
| Stock price: | $76.51 at market close Aug. 15
|
| Market capitalization: | $2.90 billion
|
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