Holley Performance Brands, a leading automotive aftermarket performance solutions company, has announced an impressive debt reduction strategy, with an additional $15 million paid down in principal against its first lien term loan facility. This latest debt reduction, completed through opportunistic repurchases at a discount to par in March, was made using cash on hand.
Since September 2023, Holley has prepaid a total of $65 million in principal against its first lien term loan facility, resulting in an estimated annualized net interest savings of up to $2.5 million. Jesse Weaver, the company's chief financial officer, emphasized the focus on reducing leverage and improving the balance sheet, attributing the achievement to the company's resilient business model, strong free cash flow generation, and efforts to improve inventory turns and product performance.
Holley's business transformation efforts are prioritizing the reduction of the leverage ratio by utilizing near-term cash flow. This debt reduction highlights the company's commitment to financial prudence and its ability to generate strong cash flow even in challenging market conditions.
As a result of these announcements, the company's shares have moved 2.7% on the market, and are now trading at a price of $4.38. If you want to know more, read the company's complete 8-K report here.
