Athens, Greece - November 1, 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 entered into an agreement for a secured term loan facility of up to approximately US$18,250,000 with Alpha Bank S.A. (the "Facility") through a separate wholly-owned subsidiary of the Company.
Proceeds from the Facility will be used to partially finance up to 50% of the purchase price of the previously-announced acquisition of the Company's seventh tanker vessel, and its first LR2, to be renamed M/T P. Aliki.
The Facility will be repayable in twenty consecutive quarterly installments of US$500,000 each, and a balloon installment of US$8,250,000 payable concurrent with the twentieth quarterly installment.
The Facility will be secured by, among other things, a guarantee of the Company and a first priority mortgage over the M/T P. Aliki.
Commenting on the Facility, Andreas Michalopoulos, the Company's Chief Executive Officer, stated:
"As we have already stated, the addition of Alpha Bank as a new lender to our Company demonstrates confidence in Performance Shipping Inc., with a 5-year term loan facility maturing in late 2027 which reduces our cost of debt. We expect to drawdown this Facility upon delivery of our seventh vessel, the M/T P. Aliki."
Performance Shipping Inc. press release