Holley Performance Brands announced a voluntary $10 million prepayment on its term loan, funded entirely from free cash flow. Chief Financial Officer Jesse Weaver stated that the prepayment reflects the discipline and consistency of the company’s capital allocation approach.
Since September 2023, Holley has repaid $125 million of debt through free cash flow generation, which has produced approximately $5 million in annualized net interest savings.
The debt reduction keeps Holley on track to achieve its year‑end leverage ratio target below 3.5x, down from a peak of 5.67x, with a long‑term goal of roughly 3.0x.
Holley designs, engineers, manufactures and markets products for automotive enthusiasts across four verticals: American Performance, Modern Truck & Off‑Road, Euro & Import, and Safety & Racing. Its capital allocation framework focuses on reducing leverage, pursuing accretive mergers and acquisitions, and returning capital to shareholders opportunistically.
