Holley committed to using strong free cash flow to continue deleveraging the balance sheet
Holley, the leading consumer platform for automotive performance enthusiasts, announced it paid down $25 million in principal against its first lien term loan facility. Accretive to earnings, the paydown aligns with leadership’s commitment to reduce leverage against Holley’s balance sheet as it executes its operational improvement plan which includes restoring profitability, improving free cash flow, and optimizing working capital.
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This debt reduction against Holley’s first lien term loan facility was completed through an opportunistic repurchase of $14 million at a discount to par through late-September, while the remaining $11 million was a voluntary prepayment of the outstanding borrowing. A continued focus on working capital management combined with disciplined capital expenditures and strategic cost leadership, enabled both transactions to be completed using cash on hand.
“We are taking actions to create more financial flexibility so that we can deliver against our commitments, invest in our teammates, enhance our operations, optimize our acquisition platform, and deepen customer engagement,” said Matthew Stevenson, President and Chief Executive Officer, Holley. “Armed with leading brands, industry essential components and high-performance products, as well as loyal enthusiast customers, we are further cementing Holley’s path to restoring profitability.”
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“Year to date, Holley’s team has delivered significantly improved cash flow with a vigilant focus on operational excellence,” said Jesse Weaver, Chief Financial Officer, Holley. “This $25 million debt paydown is directly in line with Holley’s commitment to prioritize near-term cash flow for debt reduction and position the company comfortably below amended covenant ranges.”
Holley is a leading designer, marketer, and manufacturer of high-performance products for car and truck enthusiasts. Holley offers a leading portfolio of iconic brands that deliver innovation and inspiration to a large and diverse community of millions of avid automotive enthusiasts who are passionate about the performance and personalization of their classic and modern cars. Holley has disrupted the performance category by putting the enthusiast consumer first, developing innovative new products, and building a robust M&A process that has added meaningful scale and diversity to its platform.
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