Pike Electric Amends Credit Facility
August 03 2009 - 3:01PM
PR Newswire (US)
- Extends Maturity to 2012, Increases Capacity - MOUNT AIRY, N.C.,
Aug. 3 /PRNewswire-FirstCall/ -- Pike Electric Corporation
(NYSE:PIKE), one of the nation's leading energy solutions
providers, announced today an amendment of its credit facility. J.
Eric Pike, Chairman and Chief Executive Officer, stated, "The
amendment of our credit facility provides Pike with greater
financial flexibility to operate and capitalize on opportunities as
we further position Pike as one of the nation's largest energy
solutions providers." The credit agreement consists of two term
loan facilities and a $115 million revolving credit facility. As of
June 30, 2009, the Company had $140.5 million outstanding under the
term loans and no borrowings outstanding under the revolver. The
Company did not make any additional borrowings in connection with
the amendment to the credit facility. The material amendments to
the credit facility include: -- Extending the maturity of the
revolver to July 1, 2012 from July 1, 2010 -- Increasing
availability under the revolver to $115 million from $90 million --
Increasing the aggregate dollar limits on the Company's ability to
invest in joint ventures, transfer assets to foreign subsidiaries,
make earn-out payments, use unsecured debt, lease equipment,
repurchase debt, pay dividends and repurchase equity -- Increasing
the letter of credit limit to $90 million from $50 million The
current interest rate on the revolving portion of the amended
facility will increase to LIBOR plus 350 basis points from LIBOR
plus 150 basis points. The current interest rate on the Company's
term loan remains unchanged at LIBOR plus 150 basis points. All
financial covenants remained unchanged. For further information,
please refer to the Form 8-K filed on August 3, 2009 with the
Securities and Exchange Commission. About Pike Pike is a leading
provider of energy solutions for utilities, municipalities and
cooperatives throughout the United States. Our comprehensive
services include siting, permitting, engineering design,
installation, maintenance and repair of power delivery systems,
including renewable energy projects. Our common stock is traded on
the New York Stock Exchange under the symbol PIKE. Our website is
located at http://www.pike.com/. Safe Harbor This press release
contains forward-looking statements that relate to Pike's plans,
objectives and estimates. These statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and speak only as of the date of this release. The
terms "should," "believe," "plan," "expect," "anticipate,"
"estimate," "intend" and "project" and similar words or expressions
are intended to identify forward-looking statements. Various risks,
uncertainties and other factors could cause actual results to
differ materially from those expressed in any forward-looking
statements. For a more detailed list of such risks, uncertainties
and factors, please refer to the "Risk Factor" and "Forward Looking
Statements" sections of Pike's Annual Report on Form 10-K for the
fiscal year ending June 30, 2008, "Item 1A. Risk Factors" in Pike's
Quarterly Reports on Form 10-Q for the quarters ended September 30,
2008, December 31, 2008 and March 31, 2009, and Pike's other
filings with the Securities and Exchange Commission. Pike makes no
commitment to update any forward-looking statement or to disclose
any facts, events, or circumstances after the date of this release
that may affect the accuracy of any forward-looking statement,
except as may be required by applicable law. DATASOURCE: Pike
Electric Corporation CONTACT: Lara Travars, Pike Electric
Corporation, +1-336-719-4492 Web Site: http://www.pike.com/
Copyright