Polaris Updates Credit Agreement to Enhance Financial Flexibility

By Connor Hart

Polaris has amended its existing bank-credit facility, a move that Finance Chief Bob Mack said will provide greater flexibility as the company navigates a dynamic tariff environment and focuses on long-term growth.

As part of the amendment, the maturity date of the incremental term loan has been extended to June 26, 2026, the Minnesota-based company said Wednesday.

The amendment also establishes a covenant relief period from June 30, 2025, through June 30, 2026, or earlier if Polaris chooses. During this period, certain financial covenant requirements will be relaxed to give the company more operational flexibility.

Under the revised terms, the maker of motorcycles, snowmobiles, and other vehicles will be allowed to continue paying its regular quarterly dividend and repurchase shares. However, it will be restricted from paying additional dividends beyond the regular quarterly amount and from taking on certain types of subsidiary-level debt.

Separately, Polaris said it has fully repaid $350 million in outstanding senior notes due in 2028 using revolving loans under its senior credit facilities.

"We appreciate the continued partnership from our bank group in supporting our focus on long-term growth and profitability, which we believe will enable us to emerge stronger from this dynamic period and reinforce our position as the industry leader in powersports," Mack said.

Write to Connor Hart at connor.hart@wsj.com