MSC Industrial Direct Co., Inc. - Form 8-K Summary
Business Context and Reporting Period
This Current Report (Form 8-K) was filed on February 7, 2008, by MSC Industrial Direct Co., Inc. The report discloses the entry into a material definitive agreement and the creation of a direct financial obligation effective as of January 17, 2008.
Key Financial Metrics
The filing details a new credit facility but does not provide specific revenue, profit, cash flow, or margin data for the period.
- New Debt Facility: A Promissory Note issued to JPMorgan Chase Bank, N.A.
- Maximum Borrowing Capacity: Up to $50,000,000.
- Interest Rate Options: Prime rate, a fixed rate determined by the lender, or adjusted LIBOR plus 0.40%.
- Maturity Date: All outstanding balances are due no later than March 31, 2008.
- Discretionary Nature: Borrowing is subject to the lender's sole discretion.
Material Changes
The primary material change is the establishment of a short-term revolving credit facility. The company intends to use borrowed funds for working capital and the potential repurchase of Class A Common Stock on the New York Stock Exchange. However, the company is not obligated to repurchase shares and retains sole discretion regarding such actions.
Outlook, Risks, and Contingencies
The filing does not contain forward-looking guidance, management commentary on future performance, or specific risk factors beyond the terms of the loan agreement. The short maturity date (March 31, 2008) indicates this is a short-term liquidity instrument rather than long-term capital structure financing.
Key Facts for Investor Verification
- Verify whether any funds were actually drawn under the $50 million facility prior to the March 31, 2008 maturity.
- Confirm if any share repurchases were executed using funds from this specific note.
- Review subsequent filings to determine if the facility was renewed, extended, or fully repaid.
- Check the company's overall liquidity position in the most recent 10-Q or 10-K to assess reliance on this short-term borrowing.