NEW YORK, June 28 /PRNewswire/ -- Holley Performance Products Inc. announced that it has significantly improved its capital structure and liquidity through a successful voluntary bankruptcy reorganization that became effective on June 22, 2010. As a result of the reorganization, the Company reduced its debt by over $59 million and obtained new credit arrangements, including a revolving credit facility which provides the Company with substantial flexibility to pursue its growth initiatives.
Holley is a leading designer, manufacturer and distributor of a diversified line of high performance automotive products including carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, and fluid transfer products. Holley was originally founded in 1903 by brothers George and Earl Holley and has continuously provided iconic automotive aftermarket products that enhance vehicle performance through increased horsepower, torque, and drivability. Holley products have provided the flow of fuel and air to notable vehicles including the original Model T, World War II fighter aircraft, the hottest factory performance cars of the muscle car era, every NASCAR Cup Series race car, and the majority of winning NHRA Pro Stock race cars.
According to Chief Executive Officer Tom Tomlinson, "Holley has emerged with an extraordinarily strong balance sheet which provides us with the flexibility to reinvest in our business and positions us well for continued growth. We have accomplished a true restructuring in a cooperative, efficient and timely manner, and we are deeply grateful for the support and loyalty we received from our customers, dedicated employees, suppliers, lenders, and shareholders. We have an exciting array of new products slated for introduction in the immediate future, and we are dedicated to the execution of our mission to provide the most highly sought after products in the high performance automotive aftermarket. With our new balance sheet, we now have the financial strength to create value through long-term sustainable organic growth and appropriate strategic acquisitions while continuing to enhance the reputation and reach of our core stable of brands."
Holley's reorganization converted principal and interest associated with its former second lien notes into equity and established new credit facilities with its existing senior lenders. Also during the reorganization, Holley successfully completed the sale of its diesel OEM business. Mr. Tomlinson said, "The sale of our diesel OEM business yielded excellent value that we are reinvesting in our performance business. Our team is excited that we are now able to focus 100% of our energy on our very successful high performance automotive aftermarket business."
David G. Elkins, Chairman of Holley's Board of Directors said, "We initiated Holley's voluntary bankruptcy case in September 2009 after carefully evaluating the effects of the economic recession and related collapse of the credit markets. Our goal was to significantly reduce Holley's corporate debt and overall leverage and thereby establish a sustainable, long-term capital structure that would allow the company to carry out its growth and product expansion plans. We are extremely pleased with the outcome, having reduced debt by over $59 million. Thanks to the efforts of our senior management team and other employees and to the cooperation we received from our stakeholders, suppliers and customers, Holley has emerged from this process as a financially strong company that is well-positioned for future growth and success."
Mr. Elkins went on to say, "We are pleased with the team that has been assembled to lead the Company into the future. Tom and other members of our senior management team are true automotive enthusiasts who share a genuine passion for the high performance automotive aftermarket. We are encouraged by the Company's performance since Tom assumed his CEO duties in 2009, and we look forward to exciting things from Holley in the years to come."
James Wilton and James Wright of Ropes & Gray served as lead counsel to the debtors, and David Stratton of Pepper Hamilton served as co-counsel. Christopher K. Wu, Managing Director of Carl Marks Advisory Group LLC, served as financial advisor to Holley.
More information about Holley and its products may be found at www.holley.com.
About Carl Marks Advisory Group and Carl Marks Securities LLC
Carl Marks Advisory Group LLC, with offices in New York, Vienna, Va., Bedminster, N.J., and Charlotte, N.C., provides a wide array of investment banking and financial, operational and real estate advisory services to the middle market, including mergers and acquisitions advice, sourcing of capital, financial restructuring plans, strategic business assessments, improvement plans and interim management.
Carl Marks Securities LLC, based in New York, assists its clients in executing private placements of debt and equity. The firm is a member of FINRA and SIPC. Additional information about Carl Marks Advisory Group LLC and Carl Marks Securities LLC is available at www.carlmarks.com.
SOURCE Carl Marks Advisory Group LLC