Pike Electric, the largest electrical contractor in the Eastern U.S., has drawn in $350 million for a planned $300 million "B" loan, which will fund the acquisition of a competitor. Bankers said the loan was floated at LIBOR plus 2 1/2%, but this may tighten a little given the interest levels.
The deal is sponsored by LBO shop Lindsay Goldberg & Bessemer, which bought Pike two years ago. It will fund the acquisition of Red Simpson, an Alexandria, La.-headquartered player.
Along with the term loan, leads Barclays Capital and J.P. Morgan are pitching a $250 million revolver. The tenor of the loans could not be ascertained by press time. Commitments are due June 24 and it is possible the revolver may be downsized and "B" loan increased if demand warrants it, said one banker. The aim is to close the financing by month-end. Pike is one of the main infrastructure service players in the U.S. power sector, noted one industry official. It numbers American Electric Power, Duke Energy and TXU among its clients.