Park-Ohio Industries Prices Offering Of $350.0 Mln Of Senior Secured Notes Due 2030

(RTTNews) - Park-Ohio Industries Inc., a subsidiary of Park-Ohio Holdings Corp. (PKOH), announced that it has priced its offering of $350.0 million aggregate principal amount of senior secured notes due 2030, in a private offering.

The Notes were priced at 99.500% of par and will bear an interest rate of 8.500% per annum. The Notes will be senior obligations of the Company and will be guaranteed, with certain exceptions, by the Company's existing and future domestic subsidiaries on a senior secured basis.

The company expects to close the offering of the Notes on July 31, 2025, subject to the satisfaction of customary closing conditions.

The Notes will be secured by (i) a first-priority lien on substantially all of the Company's and the guarantors' U.S. equipment and (ii) a second-priority lien (junior to the Company's revolving credit facility) on substantially all of the Company's and the guarantors' U.S. assets not constituting Notes Priority Collateral that secure the revolving credit facility.

The company said it intends to use the net proceeds from the offering of the Notes, along with cash on hand, to redeem all $350.0 million aggregate principal amount of its outstanding 6.625% Senior Notes due 2027 and pay related fees and expenses.