Long-Term Debt

The table below summarizes the components of the Company’s long-term debt.



	December 31,
	2017			2016
6% senior notes due 2022	$	300,000		$	300,000
Credit facility	100,000			70,000
Total debt	400,000			370,000
Less: unamortized deferred debt issue costs	(3,716		)	(4,472		)
Long-term debt, net ⁽¹⁾	$	396,284		$	365,528


⁽¹⁾	There were no current portions of long-term debt as of December 31, 2017 and 2016.

6% Senior Notes Due 2022. The 2022 Notes have been registered with the Securities and Exchange Commission ("SEC"). Cash interest is payable semiannually on May 15 and November 15 at a rate of 6% per year. The 2022 Notes will mature on November 15, 2022. The 2022 Notes are guaranteed, with certain exceptions, by our existing and future domestic subsidiaries. The 2022 Notes and the guarantees are our and the guarantors’ general unsecured senior obligations. The indebtedness evidenced by the 2022 Notes and the guarantees (i) rank equally in right of payment with all of FTI Consulting, Inc.'s, and the guarantors’ existing and future senior indebtedness, (ii) rank senior in right of payment to any existing and future subordinated indebtedness, (iii) are effectively junior to all of FTI Consulting, Inc.'s and the guarantors’ secured debt, including borrowings under the Credit Facility, to the extent of the value of the collateral securing such indebtedness, and (iv) are structurally subordinated to all existing and future indebtedness and other liabilities of any current and future non-guarantor subsidiaries (other than indebtedness and liabilities owed to FTI Consulting, Inc. or one of its guarantor subsidiaries).

The 2022 Notes are subject to redemption at our option at any time, in whole or in part, upon not less than 30 nor more than 60 days prior notice at the redemption price (expressed as a percentage of the principal amount to be redeemed) set forth below plus accrued and unpaid interest, if any, to, but excluding, the redemption date.



Year	Redemption Price
2018	102.000	%
2019	101.000	%
2020 and thereafter	100.000	%

Credit Facility. On June 26, 2015, we entered into a credit agreement (the “2015 Credit Agreement”), which provides for a $550.0 million senior secured revolving line of credit maturing on June 26, 2020. At the Company’s option, borrowings under the Credit Facility will bear interest at either one-, two- or three-month London Inter-Bank Offered Rate ("LIBOR") or an alternative base rate, in each case plus the applicable margin. The applicable margin will fluctuate between 1.375% per annum and 2.00% per annum, in the case of LIBOR borrowings, or between 0.375% per annum and 1.00% per annum, in the case of base rate borrowings, in each case, based upon the Company’s Consolidated Total Leverage Ratio (as defined in the 2015 Credit Agreement) at such time.

Under the Credit Facility, we are required to pay a commitment fee rate that fluctuates between 0.25% and 0.35% per annum and the letter of credit fee rate that fluctuates between 1.375% and 2.00% per annum, in each case, based upon the Company’s Consolidated Total Leverage Ratio.

Under the Credit Facility, the lenders have a security interest in substantially all of the existing and after-acquired assets of FTI Consulting, Inc. and substantially all of our domestic subsidiaries. Subject to certain conditions, at any time prior to maturity, we will be able to invite existing and new lenders to increase the size of the Credit Facility under the 2015 Credit Agreement or provide new term loans under the 2015 Credit Agreement, in each case, up to a maximum of $100.0 million plus unlimited amounts as long as the effect of the new increase does not cause the Consolidated Total Leverage Ratio to be greater than 3.50 to 1.00.

The 2015 Credit Agreement governing our Credit Facility and the indenture governing our 2022 Notes contain covenants that, among other things, limit our ability to incur additional indebtedness; create liens; pay dividends on our capital stock; make distributions or repurchases of our capital stock or make specified other restricted payments; consolidate, merge or sell assets or engage in sale-leasebacks; guarantee obligations of other entities and our foreign subsidiaries; make investments and loans; enter into transactions with affiliates or related persons, repay, redeem or purchase certain indebtedness (or modify the terms thereof), make material changes to accounting and reporting practices; and engage in any business other than consulting-related businesses or substantially related, complimentary or incidental businesses. In addition, the 2015 Credit Agreement governing our Credit Facility includes financial covenants that require us (i) not to exceed a maximum consolidated total leverage ratio (the ratio of total funded debt to adjusted EBITDA) and (ii) to exceed a minimum consolidated interest coverage ratio (the ratio of adjusted EBITDA less capital expenditures and cash taxes to cash interest expense).

There were $100.0 million in borrowings outstanding under the Company’s Credit Facility as of December 31, 2017. The Company has classified these borrowings as long-term debt in the accompanying Consolidated Balance Sheets as the amounts due are not contractually required or expected to be liquidated for more than one year from the applicable balance sheet date. Additionally, $1.0 million of the borrowing limit was used (and, therefore, unavailable) as of December 31, 2017 for letters of credit.

There were $3.1 million and $4.3 million of unamortized debt issue costs related to the Credit Facility as of December 31, 2017 and 2016, respectively. These amounts were included in “Other assets” on our Consolidated Balance Sheets.