Financing Arrangements

9 Months Ended

Sep. 30, 2025

Debt consists of the following:


				Carrying Value at
	Maturity Date	Interest Rate at September 30, 2025		September 30, 2025		December 31, 2024
				(In millions)
Senior Notes	July 31, 2030	8.500	%	$	348.3	$	—
Senior Notes	April 15, 2027	6.625	%	—		$	350.0

Revolving credit facility	July 17, 2030	5.59	%	297.3		248.6


Finance Leases	Various	Various		15.3		17.0
Other	Various	Various		13.6		13.1
Total debt				674.5		628.7
Less: Current portion of long-term debt and short-term debt				(8.3)		(8.4)

Less: Unamortized debt issuance costs				(7.1)		(2.0)
Total long-term debt				$	659.1	$	618.3

On July 31, 2025, Park-Ohio Industries, Inc. (“Park-Ohio”) completed the issuance of $350.0 million aggregate principal amount of 8.500% Senior Secured Notes due 2030 (the “2030 Notes”), in a private offering. The 2030 Notes were priced at 99.50% of par. The 2030 Notes are senior secured obligations of Park-Ohio and are guaranteed (with certain exceptions) by Park-Ohio's domestic subsidiaries that guarantee the debt under the Credit Agreement on a senior secured basis. Park-Ohio used the net proceeds from the offering of the 2030 Notes, along with cash on hand, to redeem all $350.0 million aggregate principal amount of its outstanding 6.625% Senior Notes due 2027 (the “2027 Notes”) and pay related fees and expenses.

On July 17, 2025, Park-Ohio amended its Seventh Amended and Restated Credit Agreement (the “Credit Agreement”), in order to, among other things, (a) extend the maturity date to the fifth anniversary from the closing of the revolving credit facility amendment, (b) permit the issuance of the 2030 Notes and (c) permit the 2030 Notes to be secured by (i) a first-priority lien on the substantially all of the U.S. equipment (including machinery) of the Park-Ohio and the Park-Ohio’s existing and future domestic subsidiaries (the “Guarantors”) that guarantee debt under the Credit Agreement (the “Notes Priority Collateral”) and (ii) a second-priority lien (junior to the Credit Agreement) on substantially all of the U.S. assets of Park-Ohio and the Guarantors (including the 65% pledge of the foreign equity owned by the Guarantors), other than assets constituting Notes Priority Collateral, securing the revolving credit facility (the “ABL Priority Collateral”). The Credit Agreement provides for a revolving credit facility in the amount of $405.0 million, including a $40.0 million Canadian revolving subcommitment and a European revolving subcommitment in the amount of $30.0 million. Pursuant to the Credit Agreement, Park-Ohio has the option to increase the availability under the revolving credit facility. As of September 30, 2025, we had borrowing availability of $93.2 million under the Credit Agreement.

We had outstanding bank guarantees and letters of credit under our credit arrangements of $32.7 million at September 30, 2025 and $38.5 million at December 31, 2024.

The following table represents fair value information of the Notes, classified as Level 1 using estimated quoted market prices.


	2030 Notes		2027 Notes
	September 30, 2025		December 31, 2024
	(In millions)
Carrying amount	$	348.3	$	350.0
Fair value	$	362.4	$	344.3

The fair value of the revolving credit facility is equal to its carrying value as the Company has the ability to repay the outstanding principal at par value at any time. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term nature of these instruments.