Holley Performance Brands Accelerates Deleveraging Through Debt Prepayments

Holley Performance Brands (NYSE: HLLY), home to a portfolio of automotive brands serving enthusiasts across the high-performance aftermarket, 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, according to a company press release. Cumulatively, the company’s debt reduction actions are expected to generate more than $4.5 million in annualized interest savings.

“Since Matthew Stevenson, president and 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.