Pike Electric gets credit extensions

Bank of America and First Tennessee Bank have extended an additional $20 million in credit to Mount Airy-based Pike Electric Corp., joining a consortium of banks that provide the company's revolving credit facility.

With the participation of BofA (NYSE: BAC) and First Tennessee, Pike Electric's revolving credit totals $90 million. Some $51 million of that is available for borrowing. The company also has $286.1 million available in term loans in its credit facility.

Pike says Charlotte-based BofA and First Tennessee each contributed $10 million to the revolving credit.

The changes in the facility include an immediate reduction of 50 basis points in borrowing costs on both the revolver and term portions. The changes also provide for an increased level of lease expense and allow Pike to make cash dividends to shareholders upon achieving certain leverage ratios.

"The amended credit facility expands our borrowing capacity, reduces our cost of capital and provides increased flexibility, which will facilitate the execution of our growth plans," says Eric Pike, Pike Electric's chairman and chief executive, in a prepared statement. "On an annualized basis, the reduced borrowing costs are expected to add 3 cents per diluted share to earnings."

Pike is one of the nation's largest providers of outsourced electric distribution and transmission services

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.