Performance Shipping Inc. Announces Acceptance of a Signed Offer Letter From Piraeus Bank S.A.
Performance Shipping Inc. (NASDAQ: PSHG), (the “Company”), a global
shipping company specializing in the ownership of tankers, today
announced that it has accepted an offer letter whereby it intends
to enter into an agreement for a new amortizing term loan facility
of up to US$31.5 million with Piraeus Bank S.A. (the “Facility”)
through three separate wholly-owned subsidiaries of the Company.
This Facility is subject to the completion of customary closing
conditions and the execution of a final loan agreement by the
Company and its lenders. Proceeds from the Facility will be used to
refinance an existing term loan facility for the M/T P. Fos and M/T
P. Kikuma with Nordea Bank Abp, filial i Norge, through a first
advance of up to US$22.5 million and to partially finance the
acquisition of a fifth Aframax tanker vessel through a second
advance of up to US$9.0 million. This Facility shall bear interest
at the rate of LIBOR plus a margin of 2.85% per annum.
Assuming that the Company draws down the entire
amount available under both advances, the Facility will be
repayable in sixteen (16) quarterly installments of US$1.1 million,
and concurrent with the sixteenth quarterly installment, within
four years from the drawdown date, the Company will owe a balloon
payment of US$13.9 million.
Separately, the Company has obtained approval
from Nordea Bank Abp, filial i Norge to amend the existing credit
facility, reducing the quarterly installments on the remaining
US$28.1 million term loan secured by the M/T Blue Moon and M/T
Commenting on the term loan facility, Mr.
Andreas Michalopoulos, the Company’s Chief Executive Officer,
“We are pleased to have agreed on the main terms
for a new amortizing term loan facility of up to US$31.5 million
with Piraeus Bank S.A. This is the second term loan facility that
the Company has procured since its exclusive fleet deployment in
the tanker sector and a testament to its strong relationships with
commercial banks. This facility paves the way for the acquisition
of our fifth Aframax tanker and the reduction of our quarterly
installments to reduce our daily vessel cash breakeven, thus
further facilitating the payment of dividends pursuant to our
variable dividend policy. Upon drawdown of the facility and
acquisition of the fifth Aframax tanker, we expect to comply with
our stated financial leverage policy of net debt upon incurrence
being below 35.0% of our fleet value.”
About the Company
Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of four
Aframax tankers. The Company's current fleet of tanker vessels is
employed primarily on short to medium term charters with leading
energy companies and traders.
Cautionary Statement Regarding
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 statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words "believe,"
"anticipate," "intends," "estimate," "forecast," "project," "plan,"
"potential," "may," "should," "expect," "pending" and similar
expressions 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 the strength of world economies and currencies,
general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for our vessels, changes in
our operating expenses, including bunker prices, dry-docking and
insurance costs, the market for our vessels, availability of
financing and refinancing, 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 the
novel coronavirus (COVID-19) pandemic and its impact on the demand
for seaborne transportation of petroleum and other types of
products, potential disruption of shipping routes due to accidents
or political events, vessel breakdowns and instances of off-hires
and other 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.
Chief Executive Officer, Director and Secretary
Investor and Media Relations:
Telephone: + 1-203-972-8350