Holley Performance Brands (NYSE: HLLY) cuts debt with $15M prepayment
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Holley Performance Brands reported that it made a voluntary $15 million prepayment on its first lien term loan facility, continuing its balance sheet deleveraging. The payment was funded entirely from free cash flow and further reduces outstanding borrowings under the company’s debt facilities.
Including this transaction, Holley has repaid $115 million of debt since September 2023, which is expected to generate more than $4.5 million in annualized interest savings. Management highlighted a strategy to lower net leverage from a peak of 5.67x to a targeted level below 3.5x by year-end, within a broader capital allocation framework that prioritizes reducing leverage, selective M&A, and opportunistic returns of capital to shareholders.
Positive
- $115 million of debt repaid since September 2023, funded entirely by free cash flow, is expected to generate over $4.5 million in annualized interest savings and supports the company’s stated deleveraging and net leverage reduction goals.
Negative
- None.
Insights
Analyzing...
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Recent Debt Prepayment: $15 million
Cumulative Debt Repaid: $115 million
Annualized Interest Savings: More than $4.5 million
+2 more
5 metrics
Recent Debt Prepayment
$15 million
Voluntary prepayment on first lien term loan facility announced July 14, 2026
Cumulative Debt Repaid
$115 million
Total debt repaid since September 2023 including latest prepayment
Annualized Interest Savings
More than $4.5 million
Expected annualized interest savings from cumulative debt reduction actions
Peak Net Leverage
5.67x
Historical peak net leverage referenced by management
Target Net Leverage
Below 3.5x
Management’s stated net leverage target by year-end
Key Terms
first lien term loan facility, free cash flow, net leverage, capital allocation framework, +1 more
5 terms
first lien term loan facility financial
"announcing the paydown of $15 million of its first lien term loan facility"
A first lien term loan facility is a bank-style loan with a fixed repayment schedule where the lender has the first claim on specified company assets if the borrower defaults. Think of it like having the first ticket in line for reimbursement from a company’s collateral; that priority lowers the lender’s risk and typically affects the interest rate and terms. Investors watch these loans because they influence a company’s borrowing costs, capital structure, and how much creditors could recover in bankruptcy.
free cash flow financial
"has now repaid $115 million of debt since September 2023, funded entirely with free cash flow"
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.
net leverage financial
"reduce net leverage from a peak of 5.67x to a targeted level below 3.5x"
Net leverage measures how many years it would take for a company to pay off its outstanding debt using its annual operating cash flow, after subtracting cash on hand from total debt. Think of it like a household’s mortgage balance minus savings divided by yearly income; a lower number means the company is in a safer position to handle debt, while a higher number signals greater financial risk and potential pressure on profits or growth.
capital allocation framework financial
"a disciplined, three-pronged capital allocation framework: reducing leverage, pursuing value-creating M&A"
A capital allocation framework is a set of guiding principles that a company uses to decide how to distribute its financial resources among various needs, such as investing in growth, paying dividends, or reducing debt. It helps ensure that the company's money is used efficiently to create value over time. For investors, understanding this framework offers insight into how a company plans to grow and manage its finances sustainably.
deleveraging financial
"ongoing deleveraging strategy"
Deleveraging is the process of a company reducing the amount of debt it carries relative to its assets or equity, either by paying down loans, selling assets, or raising fresh equity. For investors it matters because lower debt typically means less financial risk and steadier cash flow—like removing weight from a backpack to make a hike safer and easier—while it can also slow growth if borrowing had been funding expansion.
FAQ
What debt action did Holley (HLLY) announce on July 14, 2026?
Holley made a $15 million voluntary prepayment on its first lien term loan facility. The payment was funded entirely from free cash flow and is part of an ongoing strategy to reduce borrowings and improve the balance sheet.
How much total debt has Holley (HLLY) repaid since September 2023?
Holley has repaid a cumulative $115 million of debt since September 2023. Management states these reduction actions are expected to generate more than $4.5 million in annualized interest savings for the company.
What interest savings does Holley (HLLY) expect from its debt reduction?
Holley expects its cumulative debt reduction actions to generate more than $4.5 million in annualized interest savings. This benefit comes from repaying $115 million of debt since September 2023, including the latest $15 million prepayment.
What leverage target has Holley (HLLY) set for year-end?
Holley aims to reduce net leverage from a peak of 5.67x to below 3.5x by year-end. Management links this goal to operational improvements, consistent free cash flow generation, and continued voluntary debt repayments.
How is Holley (HLLY) funding its recent debt prepayments?
Holley states that its recent debt prepayments, including the latest $15 million, are funded entirely with free cash flow. This approach reduces outstanding borrowings without raising new capital or indicating changes to its debt facilities.
What is Holley’s (HLLY) capital allocation framework?
Holley describes a three-pronged capital allocation framework: reducing leverage, pursuing value-creating M&A, and returning capital to shareholders opportunistically. The July 2026 prepayment advances the first priority, focused on lowering net leverage.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 14, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(270 ) 782-2900
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 8.01 Other Events.
On July 14, 2026, the Company issued a press release announcing the paydown of $15 million of its first lien term loan facility. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | ||||||||||
99.1 | Press Release, dated July 14, 2026 | ||||||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL). | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HOLLEY INC. | ||||||||
| By: | /s/ Jesse Weaver | |||||||
| Name: Jesse Weaver | ||||||||
| Date: July 14, 2026 | Title: Chief Financial Officer | |||||||
Exhibit 99.1
PRESS RELEASE
1A Burton Hills Blvd., Suite 240 Nashville, TN 37215 Holley.com | |||||
HOLLEY ACCELERATES DELEVERAGING WITH ANOTHER PROACTIVE PREPAYMENT OF DEBT, TOTALING $115 MILLION SINCE 2023
Holley Performance Brands continues balance sheet transformation with additional debt reduction, reinforcing financial flexibility and long-term value creation
NASHVILLE, TENN. – July 14, 2026 - Holley Performance Brands (NYSE: HLLY), home to a portfolio of iconic automotive brands serving enthusiasts across the high-performance aftermarket, today announced that it has made an additional $15 million voluntary prepayment of debt, further advancing its ongoing deleveraging strategy. With this incremental prepayment, the Company has now repaid $115 million of debt since September 2023, funded entirely with free cash flow. Cumulatively, the Company's debt reduction actions are expected to generate more than $4.5 million in annualized interest savings.
“Since Matthew Stevenson, President & CEO of Holley Performance Brands, and I joined in 2023, we are taking action to reduce net leverage from a peak of 5.67x to a targeted level below 3.5x by year-end, driven by significant operational improvements and consistent free cash flow generation,” said Jesse Weaver, Chief Financial Officer of Holley Performance Brands. “That progress reflects a disciplined, three-pronged capital allocation framework: reducing leverage, pursuing value-creating M&A, and returning capital to shareholders opportunistically. Today's prepayment advances the first of those priorities, and we remain committed to creating long-term value for shareholders through operational execution, prudent financial management, and continued deleveraging.”
The repayment was funded entirely through free cash flow and further reduces outstanding borrowings under the Company's debt facilities. As the Company continues to execute its strategic priorities, Holley expects ongoing debt reduction to support enhanced profitability, stronger cash flow conversion, and greater financial flexibility over time.
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Exhibit 99.1
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 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 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