Park-Ohio prices $350 million in senior secured notes at 8.5%

CLEVELAND - Park-Ohio Industries, Inc., a subsidiary of Park-Ohio Holdings Corp. (NASDAQ:PKOH), announced Thursday it has priced an offering of $350 million in senior secured notes due 2030 at 99.500% of par with an interest rate of 8.500% per annum. The company, currently trading near its 52-week low of $16.76, carries a total debt of $695.7 million as of Q1 2025. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.

The notes will be senior obligations of the company and guaranteed by its existing and future domestic subsidiaries on a senior secured basis, according to a company press release. The security includes a first-priority lien on substantially all U.S. equipment and machinery, and a second-priority lien on other U.S. assets securing the company’s revolving credit facility.

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

Park-Ohio plans to use the net proceeds, along with cash on hand, to redeem all $350 million of its outstanding 6.625% Senior Notes due 2027 and pay related expenses.

The notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act and to certain non-U.S. persons under Regulation S. The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.

Park-Ohio Holdings Corp. is a diversified international company providing supply chain management services, capital equipment, and manufactured components. The company operates approximately 125 manufacturing sites and supply chain logistics facilities worldwide through three segments: Supply Technologies, Assembly Components and Engineered Products.

In other recent news, Park-Ohio Holdings Corp. announced preliminary financial results for the second quarter of 2025, estimating total net sales between $400 million and $410 million. The company also projects Adjusted EBITDA between $34 million and $37 million. These figures remain unaudited and may change after final adjustments. In a separate development, Park-Ohio reported a significant miss in its Q1 2025 earnings, with an adjusted EPS of $0.66, falling short of the projected $0.91, and revenue of $405 million, below the expected $442.7 million. Furthermore, Park-Ohio announced plans to offer $350 million in senior secured notes due 2030, aiming to use the proceeds to redeem its outstanding 6.625% Senior Notes due 2027. Shareholders also approved an amended equity and incentive compensation plan, expanding the available shares for awards by 675,000. Additionally, Edward F. Crawford, John D. Grampa, and Steven H. Rosen were elected as directors at the recent Annual Meeting of Shareholders. These developments highlight Park-Ohio’s ongoing financial and strategic initiatives.

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