Pike lenders agree to ease leverage covenant for $275 million revolver

By Angela McDaniels

Tacoma, Wash., Dec. 20 - Pike Corp. amended its $275 million secured revolving line of credit due 2015 on Tuesday to restate the leverage covenant ratio, according to an 8-K filing with the Securities and Exchange Commission.

Under the amended covenant, the company's leverage ratio is capped at 4.00 to 1.00 through June 29, 2014, at 3.75 to 1.00 from June 30, 2014 through Sept. 29, 2014 and at 3.50 to 1.00 from Sept. 30, 2014 onward.

Prior to the amendment, the leverage ratio for each of the above periods was capped at 3.00 to 1.00.

The amendment also provides for a lender to be compensated if there is a change in law relating to "liquidity" that results in a reduction to the rate of return on such lender's capital as a consequence of the credit agreement.

Regions Bank is the administrative agent.

Mount Airy, N.C.-based Pike provides energy solutions for electric utilities.

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