Holley Performance Brands Achieves $100 Million in Debt Reduction Over the Last Two Years

Rhea-AI Summary

Holley Performance Brands (NYSE: HLLY) announced on October 27, 2025 an additional voluntary debt repayment of $10 million, bringing total prepayments since September 2023 to $100 million. The company said the latest paydown repurchased portions of its first-lien term loan at a discount and was funded entirely with free cash flow. Holley estimates the cumulative prepayments will produce up to $4 million in annualized net interest savings. Management described the move as part of a multi-year transformation to reduce leverage, strengthen the balance sheet, and increase financial flexibility for long-term growth.

Positive

• $100M total debt repaid since September 2023
• Latest $10M paydown completed via discounted term-loan repurchases
• Estimated up to $4M annualized net interest savings
• Paydowns funded entirely with free cash flow

Negative

• None.

Insights

Credit-focused financial analyst

Holley cut total debt by $100 million since September 2023, improving interest expense and leverage.

The company executed a voluntary $10 million prepayment on its first‑lien term loan funded with free cash flow and opportunistic repurchases at a discount, bringing cumulative repayments to $100 million. Management estimates these actions will deliver up to $4 million in annualized net interest savings, which directly improves reported interest expense and cash available for operations.

Benefits depend on sustained free cash flow and continued access to opportunistic repurchase opportunities; the announced savings assume the stated interest reductions and no offsetting changes in other financing costs. Watch upcoming quarterly cash flow reports, any changes to the term loan covenants or maturity schedule, and disclosure around remaining outstanding principal over the next 12–24 months to verify realized savings and leverage metrics.

Holley Performance Brands continues 2025 momentum with second proactive prepayment to further reduce leverage

BOWLING GREEN, Ky., Oct. 27, 2025 (GLOBE NEWSWIRE) -- Holley Performance Brands (NYSE: HLLY) a leader in automotive aftermarket performance solutions, today announced another proactive debt reduction by an additional $10 million, bringing total repayments since September 2023 to $100 million. This continued progress underscores the lasting impact of the successful transformation over the past two years and reflects a steadfast commitment to strengthen the balance sheet, increase financial flexibility, and position the business for long-term, sustainable growth.

“This second voluntary debt repayment is a clear example that the transformation we embarked on more than two years ago is working,” said Jesse Weaver, Chief Financial Officer of Holley Performance Brands. “It reflects our disciplined operations, strong cash flow generation, and sustained momentum across our core business. With a continued focus on creating shareholder value, we’re strengthening our balance sheet and reinforcing investor confidence.”

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 prepayments, cumulative, since 2023, will drive up to $4 million in annualized net interest savings.

For more Holley Performance Brands company news, click here.

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

What did Holley (HLLY) announce on October 27, 2025 about debt reduction?

Holley announced a $10M voluntary repayment, bringing cumulative prepayments to $100M since September 2023.

How were Holley’s recent term loan prepayments funded for HLLY?

The company said the recent repurchases were funded entirely with free cash flow.

How much annual interest savings does Holley (HLLY) estimate from the prepayments?

Holley estimates the cumulative prepayments will drive up to $4M in annualized net interest savings.

Did Holley (HLLY) buy back its own debt at a discount on October 27, 2025?

Yes. The release states the latest paydown was executed via opportunistic repurchases of its first-lien term loan facility at a discount.

What is the stated purpose of Holley’s (HLLY) debt prepayments?

Holley said the prepayments aim to reduce leverage, strengthen the balance sheet, increase financial flexibility, and support long-term growth.

How long has Holley (HLLY) been executing the transformation that enabled $100M in repayments?

The company describes the effort as a more than two-year transformation that began prior to September 2023.