Business
Performance Shipping Inc. Announces Entry Into New Revolving Credit Facility With Nordea Bank at Favorable Terms Resulting in No Debt Maturities Prior To Mid-2027
ATHENS, Greece, Aug. 07, 2023 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in
About this update from Performance Shipping Inc.
[{"type":"text","content":"ATHENS, Greece, Aug. 07, 2023 (GLOBE NEWSWIRE) -- 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 successfully refinanced its existing loan facility dated July 24, 2019, by entering into an agreement for a Revolving Credit Facility (the “RCF”) of up to US$20,000,000 with Nordea Bank Abp, filial i Norge (“Nordea”), through separate wholly-owned subsidiaries of the Company, thereby extending the loan’s maturity date to 5 years from the signing of the agreement. Proceeds from the new RCF will be used first towards payment of the currently outstanding indebtedness of US$18.8 million under the previously existing loan agreement with Nordea, secured by first priority mortgages over the M/T P. Blue Moon and M/T P. Briolette, and second towards payment of the Company’s general corporate and working capital requirements. The RCF, maturing in 2028, will be repayable in quarterly instalments of US$833,332 for a period of 5 years and will carry an interest rate of SOFR plus 2.50% per annum, reducing the financing cost for the Company compared to the previously existing loan agreement. The flexible structure of this RCF provides the Company with the ability to optimize the drawdown timing and repayment schedule based on prevailing market conditions and circumstances. Commenting on the RCF, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated: “Our entry into this agreement with Nordea is indicative of the strong long-term relationships we maintain with our lenders. Their commitment and continued support of our Company are clearly reflected in the competitive terms and flexible structure of this revolving credit facility. By extending the previously existing loan facility until 2028, we enhance our liquidity position significantly, with no other loan maturities scheduled prior to July 2027. The revolving structure allows us to redraw, subject to a loan-to-value ratio, up to the full amount of the facility at any time. The market’s positive expectations of a sustainable tanker freight rate environment, coupled with our lender’s confidence in our Company’s strong financial position, are evident through this agreement. We are excited about the opportunities this refinancing brings and remain committed to delive...