Performance Shipping Co., Ltd. Announces New Term Loan Facility of $37.4 Million with Piraeus Bank

Performance Shipping Inc., a global shipping company specializing in tanker vessel ownership, Piraeus Bank SA (The Facility) is served through two separate wholly owned subsidiaries of the Company. The facility will be withdrawn in two concurrent proceedings upon delivery of the previously announced vessel M/T Phoenix Beacon, a vessel the Company has agreed to acquire, and will be renamed P. Monterey. Proceeds from the facility will be used to refinance a portion of M/T P. Kikuma’s existing Term Loan Facility as an initial upfront payment of up to approximately US$7.8 million to partially finance M/T P. Monterey will be Her second advance payment of approximately US$29.6 million.

The facility bears an interest rate of SOFR plus 2.45% per annum and is repayable in 20 consecutive quarterly installments. The first four instalments, each worth $1.5 million, the remaining 16 instalments, each worth $1 million, and contemporaneously with the 20th quarterly installment, within five years from the date of withdrawal, the Company will pay $15.4 million. You must pay the balloon payment in USD. This facility is subject to the completion of customary closing conditions and execution of the final loan agreement by the Company and its lenders.

Commenting on this thought-provoking proposal, our Chief Executive Officer Andreas Micaropoulos said:

“This offer letter from Piraeus Bank demonstrates the depth of our long-term relationship with our lenders and the use of other collateral vessels to secure new lines of credit with long maturities and competitive terms. The facility is expected to be drawn in early December to complete the financing of M/T P. Monterey.The delivery of this new BWTS-equipped tanker and a 24-month regular charter contract of USD 32,000 per day will be , combined with competitive loans, will provide strong and predictable cash flow for the company going forward.”
Source: Performance Shipping Co., Ltd.

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