S&P gives Holley Purchaser loans B-

S&P said it assigned its B- issuer credit rating to Holley Purchaser Inc. The outlook is stable.

At the same time, the agency assigned a B- issue-level rating and 3 recovery rating to the company's proposed $50 million cash flow revolver and $400 million first-lien term loan, comprising a $380 million term loan and a $20 million delayed-draw facility.

The recovery rating indicates an expectation that debtholders would realize meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default.

“Our ratings on Holley reflect the company's highly leveraged balance sheet and its niche position in the broader auto supplier market,” the agency said in a news release.

“Our ratings also account for the discretionary nature of Holley's products, which requires the company to successfully innovate and adapt to attract customers focused on auto performance products.”

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