PERFORMANCE
SHIPPING INC. ANNOUNCES
NEW LOAN
FACILITY WITH PIRAEUS BANK S.A.
TO FINANCE
ACQUISITION OF SIXTH AFRAMAX TANKER
ATHENS, GREECE, July 1, 2022 –
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.