Park-Ohio Industries, Inc., a subsidiary of Park-Ohio Holdings Corp., announced the successful pricing of its offering of $350.0 million aggregate principal amount of senior secured notes due 2030. The notes were priced at 99.500% of par and will bear an interest rate of 8.500% per annum. This marks a significant step in the company's debt management strategy.
The notes will be senior obligations of the company and guaranteed by its existing and future domestic subsidiaries on a senior secured basis. They will be secured by a first-priority lien on U.S. equipment and a second-priority lien on other U.S. assets. The company expects to close the offering on July 31, 2025, subject to customary closing conditions.
The net proceeds from this offering, combined with cash on hand, are intended to redeem all $350.0 million of its outstanding 6.625% Senior Notes due 2027 and cover related fees and expenses. This refinancing extends the maturity of a substantial portion of the company's debt. Additionally, on July 17, 2025, the company entered into an amendment to its $405.0 million revolving credit facility, extending its maturity date by five years, which further enhances its long-term liquidity.
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