FTI Raises Senior Notes Offering - Analyst Blog

FTI Consulting Inc. (FCN) announced that it has raised its senior notes offering in a private placement to $400 million from its previous offering of $350 million. The senior notes bear an interest rate of 6.75% and will mature in ten years. The senior note offering is expected to close on September 27, 2010.

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 7.625% senior notes due 2013 and for general corporate purposes. The notes will be issued to the public at a price of 100% of principal amount.

As of June 30, 2010, long-term debt and capital lease obligations, excluding the current portion, of the company was $417.1 million, down from $417.4 million as of December 31, 2009.The outstanding debt includes 7 5/8 % senior notes due 2013, 7 3/4 % senior notes due 2016 and 3 3/4 % senior subordinated convertible notes due 2012. At the end of second quarter 2010, cash and cash equivalents were $123.3 million, up from $118.9 million at the end of fiscal year 2009.
 
Apart from paying down the company's high-cost debt, the increased offering will raise available fund and extend the maturity period of debt.
 
FTI Consulting currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
 
FTI Consulting'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 head count of more than 3,500 employees.

 
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