Pike Electric amends facility to change leverage ratio requirement

By Jennifer Chiou

New York, Sept. 7 - Pike Electric Corp. entered into the first amendment to its credit agreement with J.P. Morgan Securities Inc., First Tennessee Bank, NA and Barclays Bank plc to revise the required leverage ratio covenants, according to an 8-K filed with the Securities and Exchange Commission.

Specifically, the amendment requires the company to maintain a leverage ratio of no more than 3.75 to 1.00 for the fiscal quarters ending June 30 through March 31 and 3.25 to 1.00 for the fiscal quarters ending June 30, 2011 and thereafter.

The company entered into the amendment with JPMorgan as syndication agent, First Tennessee as documentation agent and Barclays as administrative agent on Aug. 30.

Further changes waive compliance with the leverage ratio covenant prior to giving effect to the amendment with regard to the quarter ended June 30 and also add qualified remedial expenses into the calculation of consolidated EBITDA in the credit agreement.

Prior to the first amendment, the required leverage ratio had a scheduled step down to 3.00 on June 30 from 3.50 on March 31, 2010, the filing said.

Pike added that the qualified remedial expenses total $3.3 million in fiscal 2010 related to the company's environmental matter regarding remediation efforts in Marietta, Ga.

Pike is a Mount Airy, N.C.-based provider of energy services for utilities, municipalities and cooperatives.

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