FTI Consulting Inc. (FCN) announced its intention to offer of $350 million senior notes in a private placement. The senior notes bear an interest rate of 4.45% and will mature in ten years.
The company plans to use the sale proceeds from the offering to finance a simultaneously announced cash tender offer to repurchase any and all of its outstanding 7 5/8% senior notes due 2013.
The long-term debt and capital lease obligations, excluding the current portion, of the company as of June 30, 2010, was $417.1 million, down from $417.4 million as of December 31, 2009. This includes 7 5/8% senior notes due 2013, 7 3/4 % senior notes due 2016 and 3/4 % senior subordinated convertible notes due 2012.
The new offering will facilitate in paying down the company’s high-cost debt, enhance the amount of fund available and extend the maturity period of debt.
FTI Consulting currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
The company’s primary competitors are Navigant Consulting Inc. (NCI), Towers Watson & Co. (TW) and Accenture plc (ACN).
Founded in 1982, Baltimore-based FTI Consulting is a global business advisory firm, which provides specialized consulting services across 35 U.S. cities and 21 foreign countries with a total headcount of more than 3,500 employees.
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