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 è 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 più 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), líder en soluciones de rendimiento para el mercado de recambios automotrices, ha anunciado una reducción adicional de deuda de 15 millones de dólares, elevando el total de amortizaciones desde septiembre de 2023 a 90 millones de dólares. La compañía realizó esta reducción mediante recompras con descuento de su facilidad de préstamo a primer gravamen, financiadas íntegramente con flujo de caja libre.
Se espera que las reducciones acumuladas desde 2023 generen hasta 3,7 millones de dólares en ahorros netos por intereses anualizados. La empresa anticipa lograr una ratio de apalancamiento igual o inferior a 4,0x para fin de año, su nivel más bajo en más de tres años. Este desapalancamiento estratégico refleja la exitosa transformación del negocio de Holley y su compromiso con el fortalecimiento financiero.
Holley Performance Brands (NYSE: HLLY)는 자동차 애프터마켓 성능 솔루션의 선두업체로서 추가 1,500만 달러의 부채 축소를 발표했으며, 2023년 9월 이후 총 부채 상환액은 9,000만 달러에 이릅니다. 이 축소는 전액 자유현금흐름으로 조달된 우선담보 선순위 대출 시설의 할인 재매입을 통해 이루어졌습니다.
2023년 이후 누적된 부채 축소로 연간 최대 370만 달러의 순이자 비용 절감이 기대됩니다. 회사는 연말까지 레버리지 비율을 4.0배 이하로 달성할 것으로 예상하는데, 이는 지난 3년 넘게 가장 낮은 수준입니다. 이러한 전략적 부채 축소는 홀리의 성공적인 사업 전환과 재무 기반 강화 의지를 반영합니다.
Holley Performance Brands (NYSE: HLLY), leader des solutions de performance pour le marché de l'après-vente automobile, a annoncé une réduction de dette supplémentaire de 15 millions de dollars, portant les remboursements totaux depuis septembre 2023 à 90 millions de dollars. Cette réduction a été réalisée par des rachats à prix réduit de sa facilité de prêt de premier rang, financés intégralement par les flux de trésorerie disponibles.
Les réductions cumulées depuis 2023 devraient générer jusqu'à 3,7 millions de dollars d'économies nettes d'intérêts annuelles. La société prévoit d'atteindre un ratio d'endettement égal ou inférieur à 4,0x d'ici la fin de l'année, ce qui constituerait son niveau le plus bas depuis plus de trois ans. Ce désendettement stratégique reflète la transformation réussie de l'activité de Holley et son engagement à renforcer sa situation financière.
Holley Performance Brands (NYSE: HLLY), ein führender Anbieter von Performance-Lösungen im automobilen Aftermarket, hat eine zusätzliche Schuldenreduzierung in Höhe von 15 Mio. USD angekündigt und damit die seit September 2023 geleisteten Rückzahlungen auf insgesamt 90 Mio. USD erhöht. Die Reduzierung erfolgte durch rabattierte Rückkäufe seiner vorrangigen Term-Loan-Fazilität und wurde vollständig aus dem freien Cashflow finanziert.
Die kumulierten Schuldenreduzierungen seit 2023 dürften zu bis zu 3,7 Mio. USD an jährlichen Nettozinsersparnissen führen. Das Unternehmen rechnet damit, bis Jahresende ein Verschuldungsverhältnis von 4,0x oder darunter zu erreichen, was den niedrigsten Stand seit über drei Jahren bedeuten würde. Dieses strategische Deleveraging spiegelt Holleys erfolgreiche Geschäftstransformation und das Bestreben wider, die Finanzlage zu stärken.
- 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 (≤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) -- Holley Performance Brands (NYSE: HLLY) a leader in automotive aftermarket performance solutions, today announced it has proactively reduced debt by an additional
“This 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,” said Jesse Weaver, Chief Financial Officer of Holley Performance Brands. “With 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.”
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 https://www.holley.com.
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: (1) Holley’s ability to execute our business and financial strategy; (2) Holley’s ability to grow and manage growth profitably; (3) Holley’s ability to maintain relationships with customers and suppliers; (4) Holley’s ability to compete effectively in our market; (5) Holley’s ability to maintain and strengthen demand for our products and brands; (6) Holley’s ability to maintain successful and profitable partnerships; (7) Holley’s 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 Ukraine, the conflict in the 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’s estimates of its financial performance (e.g., the successful execution of cost saving initiatives); (12) Holley’s 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 “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (“SEC”) on March 14, 2025, and disclosed in any subsequent filings with the 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.
Media Relations Contact(s):
Jordan Moore, jmoore@tinymightyco.com / Sydney Goggans, sgoggans@tinymightyco.com
Investor Relations Contacts:
Anthony Rozmus / Neel Sikka / Jenna Kozlowski
Solebury Strategic Communications
203-428-3224
Holley@soleburystrat.com
FAQ
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