Holley Continues Deleveraging with Additional Debt Prepayment, Total Repayments Reach $125 Million Since 2023

Holley highlights $125 million of debt reduction since 2023, funded by free cash flow and yielding about $5 million in annual interest savings.

Rhea-AI Summary

Holley Performance Brands (HLLY) made a voluntary $10 million prepayment on its term loan as part of its deleveraging strategy.

This brings total debt repayments to $125 million since September 2023, all funded by free cash flow. Over this period, Holley reduced its Total Leverage Ratio from a peak of 5.67x, remains on track to reach a year-end leverage target below 3.5x, and continues to aim for a long-term leverage level of approximately 3.0x. The cumulative debt reductions are expected to generate about $5 million in annualized net interest savings, which the company views as supporting long-term shareholder value.

Positive

• $10 million voluntary term loan prepayment strengthens deleveraging effort
• Total debt repaid since September 2023 reaches $125 million
• Debt repayments funded entirely by free cash flow
• Total Leverage Ratio cut from 5.67x, with year-end target below 3.5x
• Cumulative debt reduction generates about $5 million in annualized net interest savings

Negative

• None.

Market Context

The August 5 update reported $115 million in cumulative voluntary debt reduction and a 3.74x leverag...

Analysis

The August 5 update reported $115 million in cumulative voluntary debt reduction and a 3.74x leverage ratio, providing a prior program checkpoint for this additional repayment.

Key Figures

Term loan prepayment: $10 million Debt repaid: $125 million Peak Total Leverage Ratio: 5.67x +2 more

Term loan prepayment

$10 million

Voluntary prepayment

Debt repaid

$125 million

Cumulative since September 2023

Peak Total Leverage Ratio

5.67x

Peak level before the deleveraging program

Year-end leverage target

Below 3.5x

Previously communicated target; company said it remained on track

Long-term leverage goal

At or below 3.0x

Long-term goal stated in the article

Historical Context

1 past event · Latest: Aug 05

1 event

1. Aug 05

   Earnings report

   24h Move

   +7.4%

   Reported $115 million in voluntary debt reduction since September 2023 and a 3.74x leverage ratio.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

free cash flow, term loan

2 terms

free cash flow financial

"funded entirely through free cash flow generation"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

term loan financial

"voluntary prepayment of $10 million toward its term loan"

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Latest prepayment continues Holley's deleveraging trajectory for the last three years and reinforces the Company's long-term goal to be at or below 3.0x leverage

NASHVILLE, Tenn., Sept. 23, 2026 (GLOBE NEWSWIRE) -- Holley Performance Brands (NYSE: HLLY), a leader in automotive aftermarket performance solutions, today announced a voluntary prepayment of $10 million toward its term loan, reflecting the Company’s continued focus on balance sheet optimization and disciplined capital deployment.

Including this latest payment, Holley has repaid a total of $125 million of debt since September 2023, funded entirely through free cash flow generation. Since initiating this program, the Company has reduced its Total Leverage Ratio from a peak of 5.67x, remains on track to reach its previously communicated year-end target of below 3.5x, and continues to target a long-term leverage ratio of approximately 3.0x. Cumulatively, the $125 million in debt reductions generate approximately $5 million in annualized net interest savings.

“This latest prepayment reflects the discipline and consistency of our capital allocation approach,” said Jesse Weaver, Chief Financial Officer of Holley Performance Brands. “Since 2023, we have reduced our debt by $125 million, funded entirely by free cash flow, while continuing to invest in the business. That progress reflects our three-pronged capital allocation framework: reducing leverage, pursuing accretive M&A, and returning capital to shareholders opportunistically. We remain on track to bring year-end leverage below 3.5x, with a long-term target of approximately 3.0x, and we believe this continued financial discipline positions Holley to create long-term value for our shareholders.”

For more Holley company news, click here.

Forward-Looking Statements 
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the “safe harbor” 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 Holley’s ability to achieve its stated leverage targets, opportunistically reduce debt, complete accretive acquisitions of complementary brands at attractive valuations, and opportunistically repurchase its own shares, and the other risks and uncertainties set forth in the Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (“SEC”) on March 16, 2026, and in any subsequent filings with the SEC.

About Holley Performance Brands
Holley Performance Brands (NYSE: HLLY) is home to a portfolio of iconic brands that serve enthusiasts across the high-performance aftermarket. The company designs, engineers, manufactures and markets category-leading products and solutions for automotive enthusiasts through a focused portfolio spanning four consumer vertical groupings: American Performance, Modern Truck & Off-Road, Euro & Import, and Safety & Racing. For more than a century, Holley has built its reputation through innovation, technical expertise and a deep understanding of enthusiast culture. For more information, visit https://www.holley.com.

Investor Relations Contact(s):
Anthony Rozmus / Jenna Kozlowski
Solebury Strategic Communications
203-428-3224
Holley@soleburystrat.com

Media Relations Contact(s):
Nathan Espinosa/Michael Murray
Kahn Media
818-881-5246
Holley@KahnMedia.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How has Holley funded the $125 million of debt repayments since 2023?

Holley states that the $125 million of debt repayments made since September 2023 have been funded entirely through free cash flow generation, while the company has continued to invest in the business.

What is Holley’s stated capital allocation framework?

The company describes a three-pronged capital allocation framework: reducing leverage, pursuing accretive M&A, and returning capital to shareholders opportunistically.

What long-term leverage target does Holley aim for?

Holley continues to target a long-term leverage ratio of approximately 3.0x, and it expects to bring year-end leverage below 3.5x.