Polaris Inc. announced that it has priced a $500 million offering of 5.600% senior notes due 2031, with BofA Securities, Wells Fargo Securities, MUFG Securities Americas, and U.S. Bancorp Investments serving as joint book‑running managers.
The company will use the net proceeds to repay its incremental term loan facility in full and to fund general corporate purposes, including the potential repayment of outstanding borrowings under its revolving loan facility. By converting variable‑rate, short‑term debt into a fixed‑rate, long‑term obligation, Polaris aims to lower its cost of capital and improve liquidity, thereby reducing leverage and providing greater financial flexibility.
Polaris’s decision comes against a backdrop of mixed recent performance. In Q3 2025 the company generated $1.84 billion in sales but posted a net loss of $15.8 million, compared with a $27.7 million net income in Q3 2024. The Off‑Road segment drove revenue growth, while the On‑Road segment experienced softness. As of December 31, 2024, Polaris’s long‑term debt stood at $1.84 billion, giving it a debt‑to‑equity ratio of roughly 1.30. The refinancing therefore helps the company manage a high leverage position and stabilize its balance sheet amid a challenging macro environment.
Strategically, the offering aligns with Polaris’s broader debt‑management plan and tariff‑mitigation efforts. The fixed‑rate notes mature in 2031, extending the company’s debt horizon and shielding it from short‑term interest‑rate volatility. The lower coupon rate also reflects a favorable interest‑rate environment, allowing Polaris to reduce interest expense and free up cash for future capital allocation initiatives.
The notes are expected to close on November 13, 2025, subject to customary closing conditions. The transaction is part of Polaris’s ongoing effort to strengthen its financial position and support its operational and strategic priorities.
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