MSC Industrial Receives $650 Million in Loans for Acquisition
MSC Industrial Direct Co. (MSM), a provider of office and industrial equipment, got $650 million in loans to help finance its acquisition of Barnes Group Inc. (B)’s North American distribution business.
The funding consists of a $250 million term loan and a $400 million revolving credit line, MSC said today in a statement distributed by PR Newswire. The Melville, New York-based company said it borrowed $120 million from the revolver and also used cash to finance the deal.
MSC Industrial agreed in February to buy the North American distribution business of Barnes Group for $550 million. The deal almost doubles the company’s sales force, Erik Gershwind, MSC’s president and chief executive officer, said in the statement today.
Under a revolver, money can be borrowed again once it’s repaid; in a term loan, it can’t.
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