Holley Announces $25 Million Debt Paydown in Line With Stated Financial Priorities
29 September 2023 - 1:30PM
Business Wire
Holley committed to using strong free cash
flow to continue deleveraging the balance sheet
Holley Inc. (NYSE: HLLY), the leading consumer platform for
automotive performance enthusiasts, today 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.
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.”
“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.”
For more investor relations news, visit Holley’s website.
About Holley
Holley Inc. (NYSE: HLLY) 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. For more
information on Holley, visit https://www.holley.com.
Forward-Looking
Statements
Certain statements in this press release may be considered
“forward-looking statements” within the meaning of the “safe
harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
relate to future events or Holley’s future financial or operating
performance. For example, statements regarding anticipated future
benefits from debt reductions are forward-looking statements. In
some cases, you can identify forward-looking statements by
terminology such as “may,” “should,” “will,” “continue,”
“estimate,” “see,” “look,” “anticipate,” “believe,” “predict,” “or”
or the negatives of these terms or variations of them or similar
terminology. Such forward-looking statements are subject to risks,
uncertainties, and other factors which could cause actual results
to differ materially from those expressed or implied by such
forward-looking statements. These forward-looking statements are
based upon estimates and assumptions that, while considered
reasonable by Holley and its management, are inherently uncertain.
Factors that may cause actual results to differ materially from
current expectations include, but are not limited to: 1) the
ability of Holley to grow and manage growth profitably which may be
affected by, among other things, competition and maintenance of
relationships with customers and suppliers; 2) the ability to hire
or retain its management and key employees, including, but not
limited to, the hiring of Mr. Stevenson; 3) costs related to Holley
being a public company; 4) disruptions to Holly's operations,
including as a result of cyber security incidents; 5) changes in
applicable laws or regulations; 6) the outcome of any legal
proceedings that may be instituted against Holley; 7) general
economic and political conditions, including the current
macroeconomic environment, political tensions and war (such as the
ongoing conflict in Ukraine); 8) the possibility that Holley may be
adversely affected by other economic, business and/or competitive
factors, including recent events affecting the financial services
industry (such as the closures of certain regional banks); 9)
Holley’s estimates of its financial performance; 10) our ability to
anticipate and manage through disruptions and higher costs in
manufacturing, supply chain, logistical operations, and shortages
of certain company products in distribution channels; and 11) other
risks and uncertainties set forth in the section entitled “Risk
Factors” and “Cautionary Note Regarding Forward-Looking Statements”
in the Annual Report on Form 10-K for the year ended December 31,
2022 filed with the U. S. Securities and Exchange Commission
(“SEC”) on March 15, 2023, and that are otherwise described or
updated from time to time in Holley’s filings with the SEC.
Although Holley believes the expectations reflected in the
forward-looking statements are reasonable, nothing in this press
release should be regarded as a representation by any person that
the forward-looking statements or projections set forth herein will
be achieved or that any of the contemplated results of such forward
looking statements or projections will be achieved. There may be
additional risks that Holley presently does not know or that Holley
currently believes are immaterial that could also cause actual
results to differ from those contained in the forward-looking
statements. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. Holley
undertakes no duty to update these forward-looking statements,
except as otherwise required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230929015094/en/
Investor Relations: Ross Collins or Stephen Poe Alpha IR
Group 312-445-2870 HLLY@alpha-ir.com
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