Financing Arrangements

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Financing Arrangements

Financing Arrangements

Debt consists of the following:

				Carrying Value at
	Maturity Date	Interest Rate at March 31, 2024		March 31, 2024		December 31, 2023
				(In millions)
Senior Notes	April 15, 2027	6.625	%	$	350.0	$	350.0
Revolving credit facility	January 14, 2027	6.94% - 7.18%		287.5		263.5
Finance Leases	Various	Various		15.5		16.3
Other	Various	Various		19.3		15.9
Total debt				672.3		645.7
Less: Current portion of long-term debt and short-term debt				(12.3)		(9.4)
Less: Unamortized debt issuance costs				(2.7)		(2.9)
Total long-term debt				$	657.3	$	633.4

In September 2023, Park-Ohio Industries, Inc. (“Park-Ohio”) amended its Eighth Amended and Restated Credit Agreement (the “Credit Agreement”). 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 by an aggregate incremental amount up to $70.0 million. The Credit Agreement matures on January 14, 2027. As of March 31, 2024, we had borrowing availability of $100.8 million under the Credit Agreement.

We had outstanding bank guarantees and letters of credit under our credit arrangements of approximately $41.0 million at March 31, 2024 and $32.8 million at December 31, 2023.

In 2017, Park-Ohio completed the issuance, in a private placement, of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027 (the “Notes”). The Notes are unsecured senior obligations of Park-Ohio and are guaranteed on an unsecured senior basis by the 100% owned material domestic subsidiaries of Park-Ohio.

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

	March 31, 2024		December 31, 2023
	(In millions)
Carrying amount	$	350.0	$	350.0
Fair value	$	328.9	$	330.2

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.