Park-Ohio takes in early tenders for 95.59% of 8 1/8% senior notes

New York, April 13 – Park-Ohio Holdings Corp. said that its Park-Ohio Industries, Inc. subsidiary received tenders and consents for $238,978,000, or 95.59%, of its $250 million of 8 1/8% senior notes due 2021 by the early deadline.

The response is sufficient to allow the company to amend the note indenture.

Park-Ohio said it has entered into a supplemental indenture which will become effective when it settles the early tenders on April 17. The settlement date is one business day later than the originally announced target of April 14.

As announced on March 31, the company is offering $1,032.08 per $1,000 principal amount for notes tendered by the early deadline of 5 p.m. ET on April 13.

Included in the total is an early tender premium of $30.00 per $1,000.

After the early deadline, the payment will be $1,002.08 per $1,000 principal amount.

In both cases, Park-Ohio will pay accrued interest up to but excluding the settlement date.

The offer ends at midnight ET on April 28.

Notes may not be tendered without delivering consents and vice versa.

In the consent solicitation, Park-Ohio is seeking to eliminate substantially all the restrictive covenants and certain events of default, to reduce the notice period to inform the trustee of a redemption and to reduce the minimum period required to deliver a notice of redemption to holders to three business days.

Funding will come from an offering of new notes, and the tender is conditional on that financing being completed as well as the receipt of sufficient consents to amend the note indenture. The company priced $350 million of new notes on April 5.

Park-Ohio said it plans to redeem any notes remaining outstanding after the tender at a price of 102.708% of par plus accrued interest.

Barclays Capital Inc. (800 438-3242 or 212 528-7581) and J.P. Morgan Securities LLC (800 270-3994 or 212 270-5613) are dealer managers.

Global Bondholder Services Corp. (212 430-3775, 212 430-3779 or 866 470-3800) is information agent.

Park-Ohio is a Cleveland-based diversified industrial holding company that provides supply chain management services and highly engineered products.

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