FTI Consulting bonds price at par to yield 6%; terms

FTI Consulting this afternoon completed an offering of senior notes via bookrunners J.P. Morgan, Bank of America, Goldman Sachs, and HSBC, sources said. Terms on the BB/Ba2 drive-by were finalized at the wide end of talk, but target size, amid mixed market conditions to close the week. Proceeds from the deal back a par-plus tender offer launched this morning for the company’s $215 million issue of 7.75% notes due 2016, which was placed in 2006 to fund the acquisition of FD International. Funds raised from the new deal will also be used to repay borrowings under the company’s credit facility and for general corporate purposes. In addition to refinancing the notes, the global-business-advisory firm is also looking to put in place a $350 million revolving credit facility due 2017 that will replace its existing facility expiring in 2015. The new facility will include an accordion feature allowing it to expand to $425 million. Terms:

Issuer FTI Consulting
Ratings BB/Ba2
Amount $300 million
Issue senior notes (144A)
Coupon 6%
Price 100
Yield 6%
Spread T+438
FRN Eq. L+434
Maturity Nov. 15, 2022
Call nc5
Trade Nov. 9, 2012
Settle Nov. 27, 2012 (T+11)
Px talk 5.75-6%

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