Performance Shipping Inc. Announces New Loan Facility With Alpha Bank S.A. to Partially Finance Acquisition Of Seventh Vessel
Performance Shipping Inc. (NASDAQ: PSHG) announced a secured term loan facility of up to US$18,250,000 with Alpha Bank S.A. to finance 50% of its seventh tanker vessel acquisition, M/T P. Aliki. The loan will be repaid in 20 quarterly installments of US$500,000 and a final balloon payment of US$8,250,000. This partnership with Alpha Bank aims to reduce the company's debt costs and enhance operational funding. The facility will be secured against the vessel itself, demonstrating the bank's confidence in the company's financial outlook.
- Secured a term loan facility of US$18,250,000 from Alpha Bank, improving liquidity.
- Loan proceeds will finance 50% of the acquisition cost of M/T P. Aliki, expanding the fleet.
- Repayment structure of 20 quarters with a balloon payment improves cash flow management.
- The loan carries a significant final balloon payment of US$8,250,000, posing future financial obligations.
ATHENS, Greece, Nov. 01, 2022 (GLOBE NEWSWIRE) -- 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
The Facility will be repayable in twenty consecutive quarterly installments of US
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.”
About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company employs its fleet on spot voyages, through pool arrangements and on time charters.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include, but are not limited to, statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts, including with respect to the delivery of the vessels we have agreed to acquire.
The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect,” “targets,” “likely,” “would,” “could,” “seeks,” “continue,” “possible,” “might,” “pending” and similar expressions, terms or phrases may identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe 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, we cannot assure you that we will achieve or accomplish these expectations, beliefs, or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to: the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker shipping industry, changes in the supply of vessels, changes in worldwide oil production and consumption and storage, changes in our operating expenses, including bunker prices, crew costs, drydocking and insurance costs, our future operating or financial results, availability of financing and refinancing including with respect to the vessels we have agreed to acquire, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, the length and severity of epidemics and pandemics, including the ongoing outbreak of the novel coronavirus (COVID-19) and its impact on the demand for seaborne transportation of petroleum and other types of products, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions or events, including “trade wars”, armed conflicts including the war in Ukraine, the imposition of new international sanctions, acts by terrorists or acts of piracy on ocean-going vessels, potential disruption of shipping routes due to accidents, labor disputes or political events, vessel breakdowns and instances of off-hires and other important factors. Please see our filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
FAQ
What is the purpose of the loan facility announced by Performance Shipping (PSHG)?
How much is the term loan facility secured by Performance Shipping (PSHG)?
What will the proceeds from the loan facility be used for?
What is the repayment schedule for the loan facility of PSHG?
Who is providing the term loan facility to Performance Shipping (PSHG)?
When is the term loan facility for PSHG expected to mature?
