Imperial Petroleum Announces the Full Repayment Of Its $30.0 Million Outstanding Loan with NBG Bank

Rhea-AI Summary

Imperial Petroleum (Nasdaq: IMPP) announced the early repayment of a $30 million loan to NBG Bank, secured by first priority mortgages on two Suezmax tankers, the Suez Enchanted and the Suez Protopia. This repayment reduces Imperial's total debt to approximately $15 million. By utilizing its excess cash, the Company aims to enhance cash flow amid rising finance costs. Currently, Imperial operates a fleet of twelve vessels, with most unencumbered, allowing for strategic financial flexibility in the maritime sector.

Positive

• Early repayment of $30 million loan strengthens financial position.
• Reduced total debt to approximately $15 million enhances liquidity.
• Most of the fleet (10 out of 12) is unencumbered, providing financial flexibility.

Negative

• None.

ATHENS, Greece, April 11, 2023 (GLOBE NEWSWIRE) -- Imperial Petroleum Inc. (Nasdaq: IMPP) (the “Company”), a ship-owning company providing petroleum products, crude oil, and drybulk seaborne transportation services, announced today that the Company recently repaid early and in full the $30.0 million outstanding loan with NBG Bank. This loan was secured with first priority mortgages against the Suezmax tankers, the Suez Enchanted and the Suez Protopia. Following this loan repayment, Imperial Petroleum’s total debt is in the region of $15 million. The Company currently owns and operates a fleet of twelve vessels, ten of which are unencumbered. The Company elected to voluntarily repay the majority of its outstanding loans so as to utilize its excess cash amidst a positive market environment and shield its cash flow generation going forward against the increasing finance costs.

ABOUT IMPERIAL PETROLEUM INC.

Imperial Petroleum Inc. is a ship-owning company providing petroleum products, crude oil and drybulk seaborne transportation services. The Company owns a total of twelve vessels; five M.R. product tankers, one Aframax oil tanker, two Suezmax tankers and four Handysize dry bulk carriers with a total capacity of 808,000 deadweight tons (dwt). Imperial Petroleum Inc.’s shares of common stock and 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock are listed on the Nasdaq Capital Market and trade under the symbols “IMPP” and “IMPPP”, respectively.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, or impact or duration of the COVID-19 pandemic and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although IMPERIAL PETROLEUM INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, IMPERIAL PETROLEUM INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include risks discussed in our filings with the SEC and the following: the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in IMPERIAL PETROLEUM INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by IMPERIAL PETROLEUM INC. with the U.S. Securities and Exchange Commission.

FAQ

What recent financial move did Imperial Petroleum (IMPP) make?

Imperial Petroleum repaid a $30 million loan to NBG Bank early, reducing its total debt to approximately $15 million.

How many vessels does Imperial Petroleum operate?

Imperial Petroleum operates a fleet of twelve vessels.

What was the purpose of repaying the loan early?

The early loan repayment was aimed at utilizing excess cash and protecting cash flow against rising finance costs.

What are the current debt levels for Imperial Petroleum (IMPP)?

Following the loan repayment, Imperial Petroleum's total debt is approximately $15 million.