S&P gives Holley, loans B

S&P said it gave B ratings to Holley Inc. and its expected first-lien credit facilities. The loans’ recovery rating is 3, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in default.

Holley plans to issue a new $600 million first-lien term loan to refinance debt. The company will also issue a new $125 million cash flow revolver and $100 million delayed-draw term loan, which is expected to be used for acquisitions.

“We perceive the refinancing as leverage neutral. We assigned our B issuer credit rating with a positive outlook, consistent with our rating on Holley Purchaser Inc. Upon close, we will discontinue our ratings on Holley Purchaser,” S&P said in a press release.

The outlook is positive.

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