HOLLEY CONTINUES DELEVERAGING WITH ADDITIONAL DEBT PREPAYMENT, TOTAL REPAYMENTS REACH $125 MILLION SINCE 2023 (Form 8-K)

HOLLEY CONTINUES DELEVERAGING WITH ADDITIONAL DEBT PREPAYMENT, TOTAL REPAYMENTS REACH $125 MILLION SINCE 2023

Latest prepayment continues Holley's deleveraging trajectory for the last three years and reinforces the Company's long-term goal to be at or below 3.0x leverage.

NASHVILLE, TENN. - September 23, 2026 - Holley Performance Brands (NYSE: HLLY), a leader in automotive aftermarket performance solutions, today announced a voluntary prepayment of $10 million toward its term loan, reflecting the Company's continued focus on balance sheet optimization and disciplined capital deployment.

Including this latest payment, Holley has repaid a total of $125 million of debt since September 2023, funded entirely through free cash flow generation. Since initiating this program, the Company has reduced its Total Leverage Ratio from a peak of 5.67x, remains on track to reach its previously communicated year-end target of below 3.5x, and continues to target a long-term leverage ratio of approximately 3.0x. Cumulatively, the $125 million in debt reductions generate approximately $5 million in annualized net interest savings.

"This latest prepayment reflects the discipline and consistency of our capital allocation approach," said Jesse Weaver, Chief Financial Officer of Holley Performance Brands. "Since 2023, we have reduced our debt by $125 million, funded entirely by free cash flow, while continuing to invest in the business. That progress reflects our three-pronged capital allocation framework: reducing leverage, pursuing accretive M&A, and returning capital to shareholders opportunistically. We remain on track to bring year-end leverage below 3.5x, with a long-term target of approximately 3.0x, and we believe this continued financial discipline positions Holley to create long-term value for our shareholders."

For more Holley company news, click here.