Prospectus Supplement No. 1
PROSPECTUS SUPPLEMENT   Filed pursuant to Rule 424(b)(3) and 424(c)
(To Prospectus dated January 13, 2006)   Commission File No. 333-129715

LOGO

FTI Consulting, Inc.

Prospectus Supplement No. 1

Dated May 25, 2006

to

Prospectus Dated January 13, 2006

 


$150,000,000 Principal Amount of

3 3/4% Convertible Senior Subordinated Notes due July 15, 2012

and the Shares of Common Stock Issuable upon Conversion of the Notes

We issued $150,000,000 of 3 3/4% Convertible Senior Subordinated Notes due July 15, 2012 in a private placement in July 2005. This prospectus supplement relates to the prospectus dated January 13, 2006 that may be used by selling securityholders to sell their notes and the shares of our common stock issuable upon conversion of their notes.

This prospectus supplement should be read in conjunction with, and may not be delivered or utilized without, the prospectus dated January 13, 2006, including amendments or supplements thereto. This prospectus supplement is qualified by reference to the prospectus and the documents and information incorporated by reference therein except to the extent that the information in this prospectus supplement updates or supersedes the information contained or incorporated by reference in the prospectus dated January 13, 2006.

 


Investment in our securities involves a number of risks. See section titled “Risk Factors” beginning on page 5 of the prospectus dated January 13, 2006 and page 18 of our Annual Report on Form 10-K for the year ended December 31, 2005 as filed with the Securities and Exchange Commission on March 7, 2006 and incorporated by reference herein to read about certain factors you should consider before buying our securities.

 


Neither the United States Securities and Exchange Commission nor any state securities commission or other regulatory body has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

 


FTI Consulting, Inc.

500 East Pratt Street

Suite 1400

Baltimore, Maryland 21202

The date of this prospectus supplement is May 25, 2006.


SELLING SECURITYHOLDERS

We originally sold the notes to Goldman, Sachs & Co. and Banc of America Securities LLC, as initial purchasers, in July 2005, in a private placement that was exempt from the registration requirements of the Securities Act. The notes were resold by the initial purchasers to persons reasonably believed by the initial purchasers to be “qualified institutional buyers,” as defined in Rule 144A under the Securities Act, in transactions exempt from the registration requirements of the Securities Act. Selling securityholders who may use the prospectus and this prospectus supplement from time to time to offer or sell any or all of their notes and shares of our common stock issuable upon conversion of the notes include the initial purchasers’ transferees, pledgees, donees and their successors.

The table below sets forth information concerning beneficial ownership of the notes and updates and supplements the table appearing under the heading “Selling Securityholders” beginning on page 60 of the prospectus dated January 13, 2006. To the extent that a selling securityholder is listed both in the table below and in the table appearing in the prospectus, the information set forth below regarding the selling securityholder supersedes the information in the prospectus. The information below is based on information that has been provided to us by or on behalf of the selling securityholders. Unless otherwise indicated below, none of the selling securityholders has, or within the past three years has had, any position, office or other material relationship with us or any of our predecessors or affiliates. Because the selling securityholders may from time to time use the prospectus and this prospectus supplement to offer all or some portion of the notes or the common stock offered hereby, we cannot provide an estimate as to the amount or percentage of any such type of security that will be held by any selling securityholder upon termination of any particular offering or sale under the prospectus and this prospectus supplement. In addition, the principal amount of notes beneficially owned prior to the offering and offered hereby and the number of shares of our common stock beneficially owned prior to the offering and offered hereby may be in excess of the total amount registered under the registration statement of which the prospectus and this prospectus supplement forms a part, due to sales or transfers by selling securityholders of such notes or shares in transactions exempt from the registration requirements of the Securities Act of 1933, as amended, after the date on which they provided us information regarding their holdings of notes and our shares of common stock.

For the purposes of the following table, the number of shares of our common stock beneficially owned has been determined in accordance with Rule 13d-3 of the Exchange Act of 1934, as amended, and such information is not necessarily indicative of beneficial ownership for any other purpose. Under Rule 13d-3, beneficial ownership includes any shares as to which a selling securityholder has sole or shared voting power or investment power and also any shares which that selling securityholder has the right to acquire within 60 days of the date of this prospectus through the exercise of any stock option, warrant or other rights.

 

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     Principal Amount of Notes(1)     Number of Shares of
Common Stock(1)(2)

Selling Securityholder(1)

   Beneficially
Owned Prior to
the Offering
and Offered
Hereby
   Percentage of
Notes
Outstanding
    Beneficially
Owned Prior to
the Offering
   Offered
Hereby

Holders of convertible notes or shares issuable upon conversion thereof:

          

Aloha Airlines Non-Pilots Pension Trust

   5,000    *     160    160

Anthony Munk

   140,000    *     4,480    4,480

Arkansas PERS

   55,000    *     1,760    1,760

Astraszencea Holdings Pension

   15,000    *     480    480

Attorney’s Title Insurance Fund

   5,000    *     160    160

Bancroft Convertible Fund, Inc.

   1,125,000    *     35,998    35,998

Bank Austria Cayman Islands, Ltd.(5)

   1,500,000    1.0 %   47,997    47,997

Barclay’s Global Distribution Bonds(3)

   100,000    *     3,200    3,200

Basso Fund Ltd.(3)

   130,000    *     4,160    4,160

Basso Holdings Ltd.(3)

   490,000    *     15,679    15,679

Basso Multi-Strategy Holding Fund Ltd.(4)

   380,000    *     12,159    12,159

BNP Paribas Equity Strategies, SNC(5)(6)(7)

   1,783,000    1.2 %   58,266    56,842

Boilermakers Blacksmith Pension Trust

   75,000    *     2,400    2,400

C&H Sugar Company Inc.

   5,000    *     160    160

Calamos® Global Growth and Income Fund—Calamos® Investment Trust

   1,930,000    1.3 %   61,756    61,756

Calamos® Growth and Income Fund—Calamos® Investment Trust

   27,700,000    18.5 %   886,345    886,345

Calamos® Growth and Income Portfolio—Calamos® Advisors Trust

   180,000    *     5,760    5,760

Cervantes Portfolio LLC(8)

   200,000    *     6,400    6,400

Chrysler Corporation Mater Retirement Trust(5)(9)

   2,160,000    1.4 %   69,116    69,116

CooperNeff Convertible Strategies (Cayman) Master Fund, LP(6)

   1,507,000    1.0 %   48,221    48,221

CNH CA Master Account, L.P. (29)

   4,000,000    2.7 %   127,992    127,992

CQS Capital Structure Arbitrage Master Fund Limited(10)

   6,000,000    4.0 %   191,988    191,988

DB AG London (5)

   13,000,000    8.7 %   415,974    415,974

Delaware PERS

   30,000    *     960    960

Delta Airlines Master Trust

   15,000    *     480    480

Delta Airlines Master Trust—CV(5)(9)

   460,000    *     14,719    14,719

Delta Pilots Disability & Survivorship Trust—CV(5)(9)

   210,000    *     6,720    6,720

Deutsche Bank Securities Inc.(11)

   1,900,000    1.3 %   60,796    60,796

Duke Endowment

   15,000    *     480    480

Eartham Foundation(8)

   50,000    *     1,600    1,600

Ellington Overseas Partners, LTD(12)

   11,000,000    7.3 %   351,978    351,978

Ellsworth Convertible Growth and Income Funds, Inc.

   1,125,000    *     35,998    35,998

F.M. Kirby Foundation, Inc.(5)(9)

   320,000    *     10,239    10,239

Fidelity Financial Trust: Fidelity Convertible Securities Fund(5)(13)

   11,995,000    8.0 %   383,816    383,816

Fidelity Financial Trust: Fidelity Strategic Dividend & Income Fund

   1,000,000    *     31,998    31,998

Fore Convertible Master Fund, Ltd.(14)

   19,000,000    12.7 %   607,962    607,962

 

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     Principal Amount of Notes(1)     Number of Shares of
Common Stock(1)(2)

Selling Securityholder(1)

   Beneficially
Owned Prior to
the Offering
and Offered
Hereby
   Percentage of
Notes
Outstanding
    Beneficially
Owned Prior to
the Offering
   Offered
Hereby

Fore ERISA Fund, Ltd.(14)

   3,000,000    2.0 %   95,994    95,994

Fore Multi Strategy Master Fund, Ltd.(14)

   6,000,000    4.0 %   191,988    191,988

Grace Convertible Arbitrage Fund, Ltd.(15)

   2,250,000    1.5 %   71,996    71,996

Hallmark Convertible Securities Fund

   5,000    *     160    160

HarborCapital Advisors, Inc.(8)

   125,000    *     4,000    4,000

HarborHigh-Yield Bond Fund(8)

   125,000    *     4,000    4,000

HFR CA Select Fund(16)

   750,000    *     23,999    23,999

Honeywell International Inc. Master Retirement Trust(8)

   750,000    *     23,999    23,999

ICI American Holdings Trust

   10,000    *     320    320

Inova Health Care Services

   190,000    *     6,080    6,080

Inova Health System Retirement Plan(17)

   55,000    *     1,760    1,760

Institutional Benchmark Series (Master Feeder Ltd.)(16)

   1,800,000    1.2 %   57,596    57,596

International Truck & Engine Corporation Non-Contributory Retirement Plan Trust(5)(9)

   250,000    *     8,000    8,000

International Truck & Engine Corporation Retirement Plan for Salaried Employees Trust(5)(9)

   130,000    *     4,160    4,160

International Truck & Engine Corporation Retiree Health Benefit Trust(5)(9)

   90,000    *     2,880    2,880

Jefferies & Company(11)

   1,000,000    *     31,998    31,998

KBC Financial Products USA Inc.(18)

   1,500,000    1.0 %   47,997    47,997

LDG Limited(19)

   146,000    *     4,672    4,672

Lyxor/Convertible Arbitrage Fund Limited(6)

   338,000    *     10,815    10,815

Man Mac I Limited(14)(20)

   8,000,000    5.3 %   255,984    255,984

McMahan Securities Co., L.P.(21)(10)

   1,000,000    *     31,998    31,998

Microsoft Corporation(5)

   265,000    *     8,479    8,479

MSS Convertible Arbitrage I(19)

   26,000    *     832    832

Newport Alternative Income Fund

   400,000    *     12,799    12,799

Nuveen Preferred and Convertible Fund JQC

   310,000    *     9,919    9,919

Nuveen Preferred and Convertible Income Fund JPC

   235,000    *     7,520    7,520

OCLC Online Computer Library Center Inc.

   5,000    *     160    160

OCM Convertible Trust(5)(9)

   765,000    *     24,478    24,478

OCM Global Convertible Securities Fund(5)(9)

   85,000    *     2,720    2,720

Pebble Limited Partnership

   1,000,000    *     31,998    31,998

PM Securities (Barbados) Inc.

   450,000    *     14,399    14,399

Polygon Global Opportunities Master Fund(22)

   3,000,000    2.0 %   95,994    95,994

Prudential Insurance Co. of America

   5,000    *     160    160

Putnam Convertible Income—Growth Trust(5)

   3,600,000    2.4 %   115,193    115,193

 

4


     Principal Amount of Notes(1)     Number of Shares of
Common Stock(1)(2)

Selling Securityholder(1)

   Beneficially
Owned Prior to
the Offering
and Offered
Hereby
   Percentage of
Notes
Outstanding
    Beneficially
Owned Prior to
the Offering
   Offered
Hereby

Qwest Occupational Health Trust(5)(9)

   190,000    *     6,080    6,080

Qwest Pension Trust(5)(9)

   450,000    *     14,399    14,399

RCG Halifax Fund, Ltd.(5)

   500,000    *     15,999    15,999

RCG Latitude Master Fund, Ltd.(5)

   3,000,000    2.0 %   95,994    95,994

S.A.C. Arbitrage Fund, LLC(23)(24)

   1,000,000    *     58,598    31,998

Sage Capital Management, LLC(25)

   2,500,000    1.7 %   79,995    79,995

San Diego County Employees Retirement Association(16)

   1,500,000    1.0 %   47,997    47,997

SG Americas Securities, LLC

   250,000    *     8,000    8,000

SG Americas Securities, LLC

   5,000,000    3.3 %   159,990    159,990

Silvercreek II Limited

   1,880,000    1.3 %   60,156    60,156

Silvercreek Limited Partnership

   2,230,000    1.5 %   71,356    71,356

Singlehedge US Convertible Arbitrage Fund(6)

   465,000    *     14,879    14,879

Southern Farm Bureau Life Insurance

   25,000    *     800    800

Sphinx Fund(19)

   208,000    *     6,656    6,656

State Employees’ Retirement Fund of the State of Delaware(5)(9)

   525,000    *     16,799    16,799

State of Oregon Equity

   175,000    *     5,600    5,600

Sturgeon Limited(6)

   907,000    *     29,022    29,022

Syngenta AG

   10,000    *     320    320

The Salvation Army—Eastern Territory(8)

   100,000    *     3,200    3,200

The St. Paul Travelers Companies, Inc.—Commercial Lines(5)(9)

   665,000    *     21,279    21,279

TQA Master Fund, LTD(19)

   146,000    *     4,672    4,672

TQA Master Plus Fund, LTD(19)

   2,084,000    1.4 %   66,684    66,684

UnumProvident Corporation(5)

   205,000    *     6,560    6,560

Vanguard Convertible Securities Fund, Inc.(5)(9)

   3,215,000    2.1 %   102,874    102,874

Vicis Capital Master Fund(26)

   7,000,000    4.7 %   223,986    223,986

Virginia Retirement System(5)(9)

   915,000    *     29,278    29,278

Waterstone Market Neutral MAC 51, Ltd.(27)

   1,179,000    *     37,726    37,726

Waterstone Market Neutral Master Fund, Ltd.(27)

   7,821,000    5.2 %   250,256    250,256

Whitebox Diversified Convertible Arbitrage Partners LP(30)

   2,500,000    1.7 %   79,995    79,995

Wyeth Retirement Plan—U.S. Master Trust(8)

   250,000    *     8,000    8,000

Zazove Convertible Arbitrage Fund, L.P.(16)

   6,200,000    4.1 %   198,388    198,388

Zazove Hedged Convertible Fund, L.P.(16)

   2,750,000    1.8 %   87,995    87,995

Zurich Institutional Benchmark Master Fund(19)

   242,000    *     7,744    7,744

Any other selling securityholder of notes or future transferee from any such holder(28)

   *    *     *    *
                    

Total

   150,000,000    100 %   4,827,514    4,799,700
                    

* Less than 1%.

 

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(1) Information concerning the selling securityholders may change from time to time. Any such changed information will be set forth in supplements to this prospectus if and when necessary. The amount of notes and the number of shares of our common stock issuable upon conversion of the notes indicated may be in excess of the total amount registered under the shelf registration statement of which this prospectus forms a part, due to sales or transfers by selling securityholders of such notes or shares in transactions exempt from the registration requirements of the Securities Act after the date on which they provided us information regarding their holdings of notes and such shares of common stock.

 

(2) For purposes of presenting the number of shares of our common stock beneficially owned by holders of notes, we assume a conversion rate of 31.9980 shares of our common stock per $1,000 in principal amount of notes, which is equal to an initial conversion price of $31.25 per share. However, the conversion price is subject to adjustment as described under “Description of the Notes—Conversion Rights.” As a result, the number of shares of common stock issuable upon conversion of the notes, and as a consequence, the number of shares beneficially owned by the holders of notes, may increase or decrease in the future.

 

(3) David Clott has voting and dispositive power over the securities listed above that are held by this selling securityholder.

 

(4) Basso Capital Management, L.P. is the investment manager of this selling securityholder, and consequently has voting and dispositive power over the securities listed above that are held by this selling securityholder. Howard Fischer has ultimate trading responsibility with respect to this selling securityholder. Mr. Fischer disclaims ultimate beneficial ownership of the securities listed above that are held by this selling securityholder.

 

(5) This selling securityholder has advised us that it is an affiliate of a broker-dealer and that it purchased the securities reflected in this table as being owned by it and offered for sale in the ordinary course of business and, at the time of purchase, it had no agreements or understandings, directly or indirectly, with any person to distribute those securities.

 

(6) CooperNeff Advisors Inc. has sole investment control and shared voting control over the securities listed above that are held by this selling securityholder. Christian Menestrier is the chief executive officer of CooperNeff Advisors Inc.

 

(7) Under common control with BNP Paribas Securities Corp. Number of shares of common stock offered hereby excludes 1,424 shares beneficially owned by the selling securityholder that may not be sold pursuant to this prospectus or the registration statement of which this prospectus is a part.

 

(8) Shenkman Capital Management, Inc. (“Shenkman”) acts as investment manager for this selling securityholder, and as such has the power to direct the voting and disposition of securities held by this selling securityholder. Mark Shenkman is the chief investment officer of Shenkman and has oversight authority over all portfolio managers at Shenkman.

 

(9) Oaktree Capital Management, LLC (“Oaktree”) is the investment manager of this selling securityholder and consequently has voting and dispositive power over the securities listed above that are held by this selling securityholder. Lawrence W. Keele is a principal of Oaktree and is the portfolio manager of this selling securityholder. Mr. Keele, Oaktree and all employees and members of Oaktree disclaim beneficial ownership of the registrable securities held by this selling securityholder, except for their pecuniary interest therein.

 

(10) Michael Hintze has voting and dispositive power over the securities listed above that are held by this selling securityholder.

 

(11) This selling securityholder has advised us that it is a broker-dealer. Accordingly under interpretations by the staff of the SEC, this selling securityholder may be deemed to be an “underwriter” within the meaning of the Securities Act. This selling securityholder has advised us that it purchased the securities reflected in this table as being owned by it and offered for sale for investment purposes and that such securities were not acquired as compensation for underwriting activities.

 

(12) Ellington Management Group, LLC is the investment adviser of this selling securityholder. Michael Vranos, as principal of Ellington Management Group, LLC, has voting and investment control of the securities offered hereby. Mr. Vranos disclaims beneficial ownership over the securities offered hereby except to the extent of any indirect ownership interest he may have in such securities through his economic participation in this selling securityholder.

 

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(13) This selling securityholder is a registered investment fund advised by Fidelity Management & Research Company (“FMR Co.”), a registered investment adviser under the Investment Advisers Act of 1940, as amended. FMR Co., 82 Devonshire Street, Boston, MA 02109, a wholly-owned subsidiary of FMR Corp. and an investment adviser registered under Section 203 of the Investment Advisers Act of 1940, is the beneficial owner of 2,785,136 shares of FTI’s common stock outstanding (including the number of shares into which the securities listed in the table above as beneficially owned by this selling securityholder and offered hereby, are convertible) as a result of acting as investment adviser to various investment companies registered under Section 8 of the Investment Company Act of 1940. Edward C. Johnson 3d, FMR Corp., through its control of FMR Co., and the selling securityholder each has sole power to dispose of the securities owned by the selling securityholder. Neither FMR Corp., nor Edward C Johnson 3d, chairman of FMR Corp., has the sole power to vote or direct the voting of the shares owned directly by the selling securityholder, which power resides with the selling securityholders Board of Trustees.

 

(14) David Egglishaw has voting and dispositive power over the securities listed above that are held by this selling securityholder.

 

(15) Bradford Whitmore and Michael Brailov have voting and dispositive power over the securities listed above that are held by this selling securityholder.

 

(16) Gene T. Prelti has voting and dispositive power over the securities listed above that are held by this selling securityholder.

 

(17) Nick Calamos has voting and dispositive power over the securities listed above that are held by this selling securityholder.

 

(18) This selling securityholder is an indirect wholly-owned subsidiary of KBC Bank N.V., which is a direct wholly-owned subsidiary of KBC Bank & Insurance Holding Company N.V., a publicly traded entity.

 

(19) TQA Investors LLC has voting and dispositive power over the securities listed above that are held by this selling securityholder. The members of TQA Investors LLC are Robert Buttman, John Idone, George Esser, Paul Bucci and Bartholomew Tesoriero.

 

(20) Man-Diversified Fund II Ltd. is the controlling entity of this selling securityholder. The manager shares of Man-Diversified Fund II Ltd. are owned 75% by Albany Management Company Limited and 25% by Man Holdings Limited. The registered shareholder of Albany Management Company Limited is Argonaut Limited, a Bermuda company, which is controlled by Michael Collins, a resident of Bermuda. Man Holdings Limited is a subsidiary of Man Group plc, which is a public company listed on the London Stock Exchange.

 

(21) The executive committee of this selling securityholder has voting and dispositive power over the securities listed above that are held by this selling securityholder. The members of the executive committee are Jay Glassman, Ronald Fertig, Joe Dwyer, D. Bruce McMahan, Scott Dillinger and Norman Ziegler.

 

(22) The board of directors of this selling securityholder has voting and dispositive power over the securities listed above that are held by this selling securityholder. The members of the board of directors of this selling securityholder are Alex Jackson, Andrew Farquhar, Byron Knief, Greville Ward and Reade Griffith.

 

(23) S.A.C. Capital Advisors, LLC and S.A.C. Capital Management LLC share all investment and voting power over the securities listed above that are held by this selling securityholder. S.A.C. Capital Advisors, LLC and S.A.C. Capital Management LLC are each controlled by Steven A. Cohen. S.A.C. Capital Advisors, LLC, S.A.C. Capital Management LLC and Mr. Cohen each disclaim beneficial ownership of the securities listed above that are held by this selling securityholder.

 

(24) Number of shares of common stock offered hereby excludes 26,600 shares beneficially owned by the selling securityholder that may not be sold pursuant to this prospectus or the registration statement of which this prospectus is a part.

 

(25) Peter deLisser, as managing member of this selling securityholder, has voting and dispositive power over the securities listed above that are held by this selling securityholder.

 

(26) John Succo, Sky Lucas and Shad Stastney have voting and dispositive power over the securities listed above that are held by this selling securityholder.

 

(27) Shawn Bergerson, the Chief Executive Officer of this selling securityholder, has voting and dispositive power over the securities listed above that are held by this selling securityholder.

 

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(28) We are unable to provide the names of certain selling security holders who hold notes and/or shares of our common stock issuable upon conversion of the notes at this time, because these selling securityholders have not provided us with information and/or their notes are evidenced by a global note that has been deposited with The Depository Trust Company and registered in the name of Cede & Co., as The Depository Trust Company’s nominee. Information concerning any such selling securityholders who are not listed in the above table will be set forth in prospectus supplements from time to time, if and when required.

 

(29) CNH Partners, LLC is Investment Advisor of the Selling Securityholder and has sole voting and dispositive power over the registrable securities. Investment principals for the Advisory are Robert Krail, Mark Mitchell and Todd Pulvino.

 

(30) Andrew Redleaf has voting and dispositive power over the securities listed above that are held by this selling securityholder.

 

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