Holley Performance Brands Accelerates Debt Reduction and on Track to Reach Lowest Leverage in Over Three Years
Holley Performance Brands (NYSE: HLLY), a leader in automotive aftermarket performance solutions, has announced an additional $15 million debt reduction, bringing its total debt repayment since September 2023 to $90 million. The company executed this reduction through discounted repurchases of its first lien term loan facility, funded entirely with free cash flow.
The cumulative debt reductions since 2023 are expected to generate up to $3.7 million in annualized net interest savings. The company anticipates achieving a leverage ratio at or below 4.0x by year-end, which would mark its lowest level in over three years. This strategic deleveraging reflects Holley's successful business transformation and commitment to strengthening its financial position.
Holley Performance Brands (NYSE: HLLY), azienda leader nelle soluzioni prestazionali per il mercato aftermarket automobilistico, ha annunciato un'ulteriore riduzione del debito di 15 milioni di dollari, portando il totale dei rimborsi del debito da settembre 2023 a 90 milioni di dollari. La riduzione 猫 stata realizzata tramite riacquisti scontati della sua linea di prestito a primo grado, finanziati interamente con flussi di cassa liberi.
Le riduzioni cumulative del debito dall'inizio del 2023 dovrebbero tradursi in fino a 3,7 milioni di dollari di risparmi annui netti sugli interessi. L'azienda prevede di raggiungere un rapporto di leverage pari o inferiore a 4,0x entro fine anno, il livello pi霉 basso in oltre tre anni. Questa strategia di deleveraging riflette la riuscita trasformazione aziendale di Holley e il suo impegno a rafforzare la posizione finanziaria.
Holley Performance Brands (NYSE: HLLY), l铆der en soluciones de rendimiento para el mercado de recambios automotrices, ha anunciado una reducci贸n adicional de deuda de 15 millones de d贸lares, elevando el total de amortizaciones desde septiembre de 2023 a 90 millones de d贸lares. La compa帽铆a realiz贸 esta reducci贸n mediante recompras con descuento de su facilidad de pr茅stamo a primer gravamen, financiadas 铆ntegramente con flujo de caja libre.
Se espera que las reducciones acumuladas desde 2023 generen hasta 3,7 millones de d贸lares en ahorros netos por intereses anualizados. La empresa anticipa lograr una ratio de apalancamiento igual o inferior a 4,0x para fin de a帽o, su nivel m谩s bajo en m谩s de tres a帽os. Este desapalancamiento estrat茅gico refleja la exitosa transformaci贸n del negocio de Holley y su compromiso con el fortalecimiento financiero.
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Holley Performance Brands (NYSE: HLLY), leader des solutions de performance pour le march茅 de l'apr猫s-vente automobile, a annonc茅 une r茅duction de dette suppl茅mentaire de 15 millions de dollars, portant les remboursements totaux depuis septembre 2023 脿 90 millions de dollars. Cette r茅duction a 茅t茅 r茅alis茅e par des rachats 脿 prix r茅duit de sa facilit茅 de pr锚t de premier rang, financ茅s int茅gralement par les flux de tr茅sorerie disponibles.
Les r茅ductions cumul茅es depuis 2023 devraient g茅n茅rer jusqu'脿 3,7 millions de dollars d'茅conomies nettes d'int茅r锚ts annuelles. La soci茅t茅 pr茅voit d'atteindre un ratio d'endettement 茅gal ou inf茅rieur 脿 4,0x d'ici la fin de l'ann茅e, ce qui constituerait son niveau le plus bas depuis plus de trois ans. Ce d茅sendettement strat茅gique refl猫te la transformation r茅ussie de l'activit茅 de Holley et son engagement 脿 renforcer sa situation financi猫re.
Holley Performance Brands (NYSE: HLLY), ein f眉hrender Anbieter von Performance-L枚sungen im automobilen Aftermarket, hat eine zus盲tzliche Schuldenreduzierung in H枚he von 15 Mio. USD angek眉ndigt und damit die seit September 2023 geleisteten R眉ckzahlungen auf insgesamt 90 Mio. USD erh枚ht. Die Reduzierung erfolgte durch rabattierte R眉ckk盲ufe seiner vorrangigen Term-Loan-Fazilit盲t und wurde vollst盲ndig aus dem freien Cashflow finanziert.
Die kumulierten Schuldenreduzierungen seit 2023 d眉rften zu bis zu 3,7 Mio. USD an j盲hrlichen Nettozinsersparnissen f眉hren. Das Unternehmen rechnet damit, bis Jahresende ein Verschuldungsverh盲ltnis von 4,0x oder darunter zu erreichen, was den niedrigsten Stand seit 眉ber drei Jahren bedeuten w眉rde. Dieses strategische Deleveraging spiegelt Holleys erfolgreiche Gesch盲fts颅transformation und das Bestreben wider, die Finanzlage zu st盲rken.
- Significant debt reduction of $90 million since September 2023
- Expected $3.7 million in annualized net interest savings
- Leverage ratio projected to reach lowest level in 3+ years (鈮�4.0x)
- Strong free cash flow generation enabling debt repayment
- Two consecutive quarters of core business growth
- Still maintaining relatively high leverage ratio despite improvements
- Exposure to various market risks including supply chain disruptions
- Vulnerable to elevated interest rate environment
Insights
Holley's $90M debt reduction signals strengthening financial health, aiming for lowest leverage in 3+ years by year-end.
Holley Performance Brands has made substantial progress in its financial transformation with $90 million in total debt reduction since September 2023, including a recent $15 million prepayment. This strategic deleveraging showcases the company's commitment to strengthening its balance sheet while demonstrating improved operational execution generating solid free cash flow.
The debt reduction carries several significant implications. First, Holley expects to achieve a leverage ratio at or below 4.0x by year-end - their lowest level in over three years. This improved debt profile enhances financial flexibility, potentially allowing for strategic growth investments or shareholder returns in the future. Second, the company estimates these cumulative debt reductions will drive up to $3.7 million in annualized net interest savings, directly benefiting their bottom line.
Particularly noteworthy is that the recent paydown was executed through opportunistic repurchases of first lien term loan facility at a discount, indicating savvy financial management. This approach maximizes the impact of each dollar used for debt reduction. The fact that these repayments were funded entirely with free cash flow - rather than new financing or asset sales - signals underlying operational health and sustainable cash generation capabilities.
Holley's mention of two consecutive quarters of core business growth contextualizes this debt reduction as part of a broader positive trajectory. The company appears to be executing well on multiple fronts - growing the business while simultaneously deleveraging, which is often challenging to balance. This financial discipline, combined with operational momentum, suggests Holley's transformation efforts are gaining meaningful traction.
Holley Performance Brands advances strategic priority with proactive debt prepayment, underscoring its continued commitment to strengthening the balance sheet and enhancing financial flexibility
BOWLING GREEN, Ky., Aug. 27, 2025 (GLOBE NEWSWIRE) -- (NYSE: HLLY) a leader in automotive aftermarket performance solutions, today announced it has proactively reduced debt by an additional
鈥淭his milestone reflects more than just deleveraging. It highlights the operational excellence and disciplined execution across our teams that have fueled strong free cash flow generation,鈥� said Jesse Weaver, Chief Financial Officer of Holley Performance Brands. 鈥淲ith momentum in core business growth for two consecutive quarters, we are not only strengthening our balance sheet but also building confidence with investors that we can deliver sustained value. Importantly, we expect to achieve a leverage ratio at or below 4.0x by year-end, marking our lowest level in more than three years.鈥�
The most recent paydown was executed through opportunistic repurchases of its first lien term loan facility at a discount, funded entirely with free cash flow. Holley estimates these cumulative since 2023 will drive up to
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About Holley Performance Brands
Holley Performance Brands (NYSE: HLLY) leads in the design, manufacturing and marketing of high-performance products for automotive enthusiasts. The company owns and manages a portfolio of iconic brands, catering to a diverse community of enthusiasts passionate about the customization and performance of their vehicles. Holley Performance Brands distinguishes itself through a strategic focus on four consumer vertical groupings, including Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing, ensuring a wide-ranging impact across the automotive aftermarket industry. Renowned for its innovative approach and strategic acquisitions, Holley Performance Brands is committed to enhancing the enthusiast experience and driving growth through innovation. For more information on Holley Performance Brands and its dedication to automotive excellence, visit .
Forward-Looking Statements
Certain statements in this press release may be considered 鈥渇orward-looking statements鈥� within the meaning of the 鈥渟afe harbor鈥� provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other important factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including but not limited to: (1) Holley鈥檚 ability to execute our business and financial strategy; (2) Holley鈥檚 ability to grow and manage growth profitably; (3) Holley鈥檚 ability to maintain relationships with customers and suppliers; (4) Holley鈥檚 ability to compete effectively in our market; (5) Holley鈥檚 ability to maintain and strengthen demand for our products and brands; (6) Holley鈥檚 ability to maintain successful and profitable partnerships; (7) Holley鈥檚 ability to achieve expected returns on investments; (8) changes in applicable laws or regulations; (9) general economic and political conditions, including the current macroeconomic environment, political tensions, and war (including the conflict in聽Ukraine, the conflict in the聽Middle East, and the possible expansion of such conflicts and potential geopolitical consequences); (10) the possibility that Holley may be adversely affected by other economic, business, and/or competitive factors, including recent events affecting the financial services industry (such as the closures of certain regional banks); (11) Holley鈥檚 estimates of its financial performance (e.g., the successful execution of cost saving initiatives); (12) Holley鈥檚 ability to anticipate and manage through disruptions and higher costs in manufacturing, supply chain, logistical operations, and shortages of certain company products in distribution channels; (13) Holley's ability to anticipate and manage through the impact of elevated interest rate levels, which cause the cost of capital to increase, as well as respond to inflationary pressures and trade restrictions, including tariffs; and (14) other risks and uncertainties set forth in the section entitled 鈥淩isk Factors鈥� and 鈥淐autionary Note Regarding Forward-Looking Statements鈥� in the Annual Report on Form 10-K for the year ended聽December聽31, 2024聽filed with the聽U.S. Securities and Exchange Commission聽(鈥淪EC鈥�) on聽March 14, 2025, and disclosed in any subsequent filings with the聽SEC. Although Holley believes the expectations reflected in the forward-looking statements are reasonable, nothing in this press release should be regarded as a representation by any person that the forward-looking statements or projections set forth herein will be achieved or that any of the contemplated results of such forward looking statements or projections will be achieved. There may be additional risks that Holley presently does not know or that Holley currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Holley undertakes no duty to update these forward-looking statements, except as otherwise required by law.
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FAQ
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