Holley Performance Brands (NYSE: HLLY) announced on September 23, 2026, a voluntary prepayment of $10 million toward its first lien term loan facility. The payment was executed on September 22, 2026, and was disclosed in a press release attached to the company’s Form 8-K filed with the SEC.
The company stated that this latest repayment is part of a broader deleveraging strategy initiated in 2023. Since September 2023, Holley has repaid a total of $125 million in debt, with all of these payments funded entirely by free cash flow generation.
Holley reported that its Total Leverage Ratio has decreased from a peak of 5.67x. The company is currently on track to achieve its previously communicated year-end leverage target of below 3.5x and maintains a long-term goal of reaching a leverage ratio of approximately 3.0x.
The company noted that the cumulative $125 million in debt reductions result in approximately $5 million in annualized net interest savings.
Holley’s Chief Financial Officer, Jesse Weaver, highlighted the company’s capital allocation framework, which includes reducing leverage, pursuing accretive mergers and acquisitions, and returning capital to shareholders opportunistically.
