#United States #Minneapolis #Polaris Inc. #Credit Agreement #Powersports

Polaris Enhances Financial Stability

Polaris Inc., a leader in the powersports industry, has recently made significant moves to bolster its financial footing. On June 27, 2025, the company executed an amendment to its existing credit agreement that was originally established on July 2, 2018. In tandem with this agreement, Polaris fully prepaid $350 million of its outstanding senior notes that were due in 2028. This strategic move was financed through revolving loans under their credit facilities.

Key Highlights of the Credit Agreement Amendment

The amended credit agreement introduces several important changes that aim to provide Polaris with increased flexibility in navigating its financial landscape:
1. Extension of Maturity: The maturity date for their incremental term loan has been pushed back to June 26, 2026.
2. Covenant Relief Period: For the period from June 30, 2025, to June 30, 2026 (or an earlier date designated by Polaris), financial covenants have been adjusted to reduce restrictions on company operations.
3. Limitations During Relief Period: While under this covenant relief period, Polaris is allowed to continue its regular quarterly dividend payments as sanctioned by its Board of Directors and can also repurchase shares to manage dilution from equity compensation plans. However, it will be restricted from disbursing any extraordinary dividends and incurring specific debts at the subsidiary level, with certain exceptions.

Despite these new provisions, the amended agreement retains covenants and default events consistent with the previous version, ensuring a stable governance structure.

Comment from Leadership

Bob Mack, the Chief Financial Officer of Polaris, expressed optimism about these changes, emphasizing the need for flexibility as the company deals with a challenging tariff environment. He stated, “We appreciate the continuous support from our banking partners as we focus on our long-term growth and profitability. This agreement will empower us to emerge from this transitional period more robustly and maintain our position as an industry leader in powersports.”

About Polaris Inc.

Founded in 1954, Polaris Inc. has become synonymous with high-quality outdoor experiences. The company specializes in producing a range of vehicles including side-by-side off-road vehicles, all-terrain vehicles, motorcycles, and boats, among other products. With a commitment to enhancing outdoor experiences, Polaris also offers an expansive portfolio of parts and accessories, serving a global market of nearly 100 countries.

For detailed information regarding the amendment, refer to the full text available on Polaris's Current Report on Form 8-K.

This month marks an important chapter in Polaris's journey towards financial agility and resilience, reflecting its ongoing commitment to industrial leadership and customer satisfaction. As the company continues to navigate the complexities of the current economic landscape, it remains focused on delivering innovative products and experiences that connect people with the great outdoors.