On April 22, 2013, MSC Industrial Direct Co. Inc. entered into a new $650 million credit facility, by and among the company, the several banks and other financial institutions or entities from time to time parties thereto, and JPMorgan Chase Bank, N.A., as administrative agent. The New Credit Facility, which matures on April 22, 2018, provides for a five-year unsecured revolving loan facility in the aggregate amount of $400 million and a five-year unsecured term loan facility in the aggregate amount of $250 million. On the Closing Date, the \company borrowed the full $250 million available under the term loan facility and $120 million of the revolving loan facility in order to pay a portion of the cash consideration for the Acquisition. The remainder of the cash consideration for the Acquisition was financed using existing cash. The New Credit Facility replaced the company's existing $200 million Credit Agreement, dated June 8, 2011, among the company, the lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, RBS Citizens, N.A. and Wells Fargo Bank, N.A., as co-documentation agents, and Bank of America, N.A., as syndication agent which Existing Credit Facility was terminated on the Closing Date. The New Credit Facility permits up to $25 million of the revolving loan facility to be borrowed as swingline loans and up to $50 million of the revolving loan facility to fund letters of credit. The New Credit Facility also permits the company, at its option, to add one or more incremental term loan facilities and/or increase the revolving loan commitments in an aggregate amount not to exceed $200 million. Any incremental term loan facility would be on terms to be agreed upon among the company, the Administrative Agent, and the Lenders who agree to participate in the facility.

Barnes Group Inc. (NYSE:B) is seeking acquisitions. Barnes Group will use the after tax proceeds of $400 million from the sale of its Barnes Distribution North America business to MSC Industrial Direct Co. Inc. (NYSE:MSM) to reduce debt, buyback common shares, invest in profitable growth initiatives including potential acquisitions and for general corporate purposes.

MSC Industrial Direct Co. Inc. reported unaudited consolidated earnings results for the second quarter and six months ended March 2, 2013. For the quarter, the company’s net sales were $569,462,000 against $562,974,000 a year ago. Income from operations was $90,576,000 against $96,527,000 a year ago. Income before provision for income taxes was $90,629,000 against $96,509,000 a year ago. Net income was $56,079,000 or $0.88 diluted per share against $60,068,000 or $0.95 diluted per share a year ago. Adjusted operating income was $92,349,000 against $96,527,000 a year ago. Adjusted net income was $57,177,000 or $0.90 per share. For the six months, the company’s net sales were $1,146,953,000 against $1,108,677,000 a year ago. Income from operations was $192,928,000 against $193,351,000 a year ago. Income before provision for income taxes was $192,956,000 against $193,333,000 a year ago. Net income was $119,266,000 or $1.88 diluted per share against $119,905,000 or $1.89 diluted per share a year ago. Net cash provided by operating activities was $135,027,000 against $74,063,000 a year ago. Expenditures for property, plant and equipment were $40,306,000 against $17,322,000 a year ago. Adjusted operating income was $196,033,000 against $193,351,000 a year ago. Adjusted net income was $121,185,000 or $1.91 per share. Based on a continuation of current market conditions, for the fiscal 2013 third quarter the company expects net sales to be between $597 million and $609 million reflecting flat average daily sales growth at the midpoint. Excluding non-recurring costs related to the co-location of the Company's headquarters in Davidson, North Carolina and the effects of the pending acquisition of BDNA, including non-recurring transaction and integration costs, the company expects adjusted diluted earnings per share for the third quarter of fiscal 2013 to be between $0.95 and $0.99. Guidance reflects the existing soft demand environment and the lack of a mid-year price adjustment. The company expects the non-recurring costs related to the co-location of the company's headquarters to have a $0.01 impact on its GAAP diluted earnings per share in the fiscal third quarter. The company expects third quarter tax rate to be about 38.2%. The company expects gross margin for third quarter to be in the range of 44.9%, plus or minus 20 basis points. The company expects CapEx in fiscal year 2013 to be elevated and likely to be in the $100 million range, driven by infrastructure investments of nearly $50 million in Davidson and Columbus combined, in addition to increased investment related to vending program. In the absence of pricing actions, gross margin tends to decline as the company progress throughout the year.