Performance Shipping Inc. Announces New Loan Facility With Piraeus Bank S.A. to Partially Finance the Acquisition of M/T P. Monterey
Performance Shipping Inc. (NASDAQ: PSHG) has secured a term loan facility of up to US$37.4 million from Piraeus Bank S.A. The funds will refinance part of an existing loan for the M/T P. Kikuma and partially finance the M/T P. Monterey. The facility carries an interest rate of SOFR plus 2.45% and is to be repaid over five years in twenty installments. CEO Andreas Michalopoulos highlighted the importance of long-term relationships with lenders and securing collateral for favorable loan terms. The facility is expected to be drawn upon delivery of the M/T P. Monterey.
- Secured term loan facility of up to US$37.4 million enhances liquidity.
- Refinancing of existing loans can reduce financial strain.
- Interest rate of SOFR plus 2.45% is competitive.
- Loan secured by significant collateral assets (M/T P. Kikuma and M/T P. Monterey) ensures lender confidence.
- The reliance on debt financing increases financial risk.
- Potential for cash flow pressures due to large balloon payment of US$15.4 million.
ATHENS, Greece, Nov. 28, 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 US
This Facility will carry an interest rate of SOFR plus
Commenting on the Facility, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Our entry into this agreement with Piraeus Bank follows our announced acceptance of the offer letter from Piraeus Bank on November 9, 2022 and demonstrates the depth of our long term relationships with our lenders and the use of other collateral vessels to secure new loan facilities with long dated maturities and competitive terms. We expect to drawdown this facility upon delivery of the M/T P. Monterey.”
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
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