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 new amortizing term loan facility of up to approximately US$31.9
million with Piraeus Bank S.A. (the “Facility”) through two
separate wholly-owned subsidiaries of the Company. Proceeds from
the Facility will be used to refinance approximately US$7.3 million
of the existing term loan facility with Piraeus Bank S.A. secured
by the M/T P. Yanbu and to partially finance the
previously-announced acquisition of the Company’s sixth Aframax
tanker vessel, to be renamed M/T P. Sophia, through a second
advance of up to approximately US$24.6 million.
The Facility shall bear interest at the rate of
LIBOR plus a margin of 2.70% per annum. Based on the amount
expected to be drawn down under both advances, the Facility will be
repayable in twenty consecutive quarterly installments of US$0.8
million each, and a balloon installment of US$15.9 million payable
concurrent with the twentieth quarterly installment. The Facility
will be secured by, among other things, a guarantee of the Company
and first priority mortgages over the M/T P. Yanbu and M/T P.
Sophia.
Commenting on the Facility, Andreas
Michalopoulos, the Company’s Chief Executive Officer, stated:
“We are very pleased to announce the entry into
this new term loan facility with Piraeus Bank at attractive terms
to complete funding for the acquisition of M/T P. Sophia. With the
financing of the acquisition of our sixth Aframax tanker now
secured, we are well-positioned to capitalize on the current
favorable tanker charter market with spot charter rates for Aframax
tankers quoted at approximately $28,000 and strong fundamentals
going forward. We expect to take delivery of the M/T P. Sophia as
early as next week and look forward to generating strong cashflows
with our expanded fleet.”
About the Company
Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of
Aframax tankers. The Company’s current fleet is employed on spot
voyages and through pool arrangements.
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 vessel 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 vessel 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.
Corporate Contact:
Andreas Michalopoulos
Chief Executive Officer, Director and Secretary
Telephone: +30-216-600-2400
Email: amichalopoulos@pshipping.com
Website: www.pshipping.com
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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