Park-Ohio to offer $350 million in senior secured notes due 2030

CLEVELAND - Park-Ohio Industries, Inc., a subsidiary of Park-Ohio Holdings Corp. (NASDAQ:PKOH), announced Tuesday plans to offer $350 million in senior secured notes due 2030, subject to market conditions. The announcement comes as the company, currently trading near its 52-week low at $17.22, maintains a market capitalization of $236 million. According to InvestingPro analysis, Park-Ohio operates with a significant debt burden, making this refinancing particularly noteworthy.

The company intends to use the proceeds, along with cash on hand, to redeem all of its outstanding 6.625% Senior Notes due 2027 and pay related expenses, according to a press release statement. The company maintains strong liquidity with a current ratio of 2.41, indicating sufficient assets to meet short-term obligations. Get deeper insights into Park-Ohio’s financial health with a comprehensive Pro Research Report, available exclusively on InvestingPro.

The notes will be senior obligations of the company and will be guaranteed by its existing and future domestic subsidiaries. They will be secured by a first-priority lien on substantially all of the company’s and guarantors’ U.S. equipment and machinery, as well as a second-priority lien on other U.S. assets that secure the company’s revolving credit facility.

In conjunction with the offering, Park-Ohio plans to amend its revolving credit facility to extend the maturity date to five years from the closing of the amendment.

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. They 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 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 across three business segments. With annual revenue of $1.64 billion and a gross profit margin of 16.92%, the company has maintained dividend payments for 12 consecutive years, demonstrating consistent shareholder returns despite market challenges. Discover more key metrics and insights about Park-Ohio and 1,400+ other stocks with InvestingPro.

In other recent news, Park-Ohio Holdings Corp. announced its preliminary financial results for the second quarter of 2025, estimating net sales between $400 million and $410 million. The company also projected an Adjusted EBITDA ranging from $34 million to $37 million. These figures are preliminary and unaudited, and final results may vary after financial closing procedures. Additionally, Park-Ohio shareholders approved an amended equity and incentive compensation plan, extending the plan’s term and increasing the shares available for awards. In corporate governance developments, Edward F. Crawford, John D. Grampa, and Steven H. Rosen were elected as directors until the 2028 Annual Meeting of Shareholders. The company also ratified Ernst & Young LLP as its independent public accounting firm for 2025. Previously, Park-Ohio’s Q1 2025 earnings fell short of expectations, with an adjusted EPS of $0.66 against a forecast of $0.91 and revenue of $405 million compared to an anticipated $442.7 million. Despite these challenges, the company remains optimistic about its future performance, particularly in the Engineered Products segment.

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