Polaris Amends Credit Facilities

By Philip Seaworth • Wednesday, July 02 15:27 • Permanent Link

Polaris Inc. (NYSE: PII) has made significant financial moves, as announced in its press release dated July 2, 2025. The company executed an amendment to its existing credit facilities, originally dated July 2, 2018, and also fully repaid all $350 million of outstanding senior notes due 2028. The debt prepayment was funded through revolving loans under the company’s senior credit facilities.

The amendment to the credit agreement includes several key updates, such as the extension of the maturity date of the incremental term loan to June 26, 2026. There is also covenant relief, with financial covenants being modified for the period from June 30, 2025 through June 30, 2026, or an earlier date as designated by Polaris. During this relief period, the company can continue to pay its regular quarterly dividend as approved by the Polaris Inc. board of directors and repurchase shares to offset dilution from equity plans. However, Polaris will be restricted from paying dividends beyond regular quarterly dividends and from incurring certain subsidiary-level debt, subject to certain exceptions.

Polaris Chief Financial Officer Bob Mack emphasized the proactive nature of the amendment, citing the dynamic tariff environment. This move allows more covenant flexibility within the agreement and supports the company's focus on long-term growth and profitability.

The figures and metrics from the press release are as follows: Fully repaid all $350 million of outstanding senior notes due 2028 Amendment extends the maturity date of the incremental term loan to June 26, 2026 Covenant relief period spans from June 30, 2025 through June 30, 2026, allowing for continued payment of regular quarterly dividend and share repurchases, with certain restrictions The debt prepayment was funded through revolving loans under the company’s senior credit facilities

These financial maneuvers indicate a strategic effort by Polaris to enhance its financial flexibility and support its long-term growth, particularly in the face of the dynamic tariff environment. The market has reacted to these announcements by moving the company's shares 3.65% to a price of $46.51. If you want to know more, read the company's complete 8-K report here.

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