Imperial Petroleum Inc. Announces Delivery of Vessel and Business Developments
October 10 2022 - 9:15AM
Imperial Petroleum Inc. (Nasdaq: IMPP) (the “Company”) announced
today:
Delivery of Vessel
On September 21, 2022 it took delivery of a 2011
Japanese built dry bulk carrier the Eco Bushfire for a
consideration of $20.5 million.
Closing of Debt Financing
The Company also announces the closing and
drawdown by two of its product tanker ship owning subsidiaries of a
new $17.0 million term loan facility. This facility will be
repayable in sixteen consecutive quarterly installments of $0.55
million each and a balloon installment of $8.2 million payable
concurrent with the 16th repayment installment on the final
maturity date. The facility will be guaranteed by the Company and
secured with first priority ship mortgages over its vessels Clean
Justice and Clean Nirvana.
In addition to the aforementioned facility, the
Company has also entered into a commitment letter for a senior
secured credit facility in an amount of up to $30.8 million related
to the financing of the two crude tanker vessels, the Suez Protopia
and the Suez Enchanted, which will collateralize the facility. This
facility remains subject to the conclusion and execution of final
documentation.
Fleet Employment Update
In terms of period employment, the Company
recently concluded:
- A minimum three months duration
time charter for its 2008 built product tanker the Clean Nirvana at
a daily rate of about $40,000.
- A minimum two months duration time
charter for its 2008 built Suezmax tanker the Suez Protopia at a
daily rate of about $50,000.
We currently have six out of our nine operating
vessels trading in the spot market.
Current Spot Market Charter Rates Update
Daily market rates for short term time charters
or voyage charters (spot) are as follows; For Suezmax, Aframax and
MR tankers daily market spot rates are currently estimated to be in
the region of $35,000 and for Handysize drybulk carrier daily
market spot rates are estimated at about $16,000.
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 10 vessels;
five M.R. product tankers, one Aframax oil tanker, two Suezmax
tankers and two handysize drybulk carriers, one of which will be
delivered shortly. These vessels have a capacity of approximately
737,000 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.
Company Contact:
Fenia Sakellaris
IMPERIAL PETROLEUM INC.
00-30-210-6250-001
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