Korn Ferry talks $400 million eight-year notes to yield in 4¾% area; books close Thursday afternoon

By Paul A. Harris

Portland, Ore., Dec. 12 – Korn Ferry talked its $400 million offering of eight-year senior notes (Ba3/BB) to yield in the 4¾% area, according to market sources.

Official talk comes at the tight end of initial guidance in the high 4% to 5% area.

Books close at 1 p.m. ET on Thursday.

BofA Securities Inc. is left bookrunner for the Rule 144A and Regulation S offering. Wells Fargo Securities LLC is the joint bookrunner.

BMO Capital Markets Corp., BNP Paribas Securities Corp., Capital One Securities Inc., HSBC Securities (USA) Inc. and MUFG are the co-managers.

The notes become callable after three years at par plus 50% of the coupon. The notes feature a three-year 35% equity clawback at par plus the coupon and a 101% poison put.

Proceeds will be used to repay the outstanding amount under the company’s existing senior secured revolving credit facility.

The company also intends to enter into a new $650 million five-year senior secured revolver.

Korn Ferry is a Los Angeles-based global organizational consulting firm.

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