Athens, Greece - September 19, 2022
Performance Shipping Inc. (NASDAQ: PSHG), ("we" or the "Company"), a global shipping company specializing in the ownership of tanker vessels, today announced that it has accepted a commitment letter whereby it intends to enter into an agreement for a new term loan facility of up to US$18,250,000.00 with Alpha Bank A.E. (the "Facility") through a separate wholly-owned subsidiary of the Company.
This Facility is subject to the completion of customary closing conditions and the execution of a final loan agreement by the Company and its lenders.
Proceeds from the Facility will be used to finance up to 50% of the purchase price of the previously announced vessel the Company has agreed to acquire, the M/T Alpine Amalia, to be renamed P. Aliki. This Facility shall bear interest at the rate of SOFR plus 2.60% per annum.
The Facility will be repayable in twenty (20) consecutive quarterly installments of US$500,000.00 each, and concurrent with the twentieth quarterly installment, the Company will owe a balloon payment of US$8,250,000.00.
Commenting on the term loan facility, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
"The addition of Alpha Bank A.E as a new lender to our Company demonstrates confidence in Performance Shipping Inc., with a 5-year term loan facility which reduces our cost of debt and extends our maturities into late 2027. We look forward to working with all three of our lenders and expanding our relationships as we continue to grow our fleet. We expect to drawdown the Facility in November to consummate the acquisition of our seventh vessel, the M/T P. Aliki. The timely addition of this ballast water treatment system (BWTS) and scrubber-fitted LR2 tanker to our fleet, in conjunction with its competitive financing arrangements, positions us advantageously in the refined petroleum product tanker sector, with spot and time charter rates for LR2 tankers currently averaging in excess of US$40,000.00 per day."
About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company’s current fleet is employed on spot voyages, through pool arrangements and on time charters.
Performance Shipping Inc. press release