Performance Shipping, a global shipping company specializing in the ownership of tanker vessels, entered into an agreement for an amortizing term loan facility of up to approximately $31.9 million with Piraeus Bank through two separate wholly-owned subsidiaries of the company. Proceeds from the facility will be used to refinance approximately $7.3 million of the existing term loan facility with Piraeus Bank secured by the M/T P. Yanbu and to partially finance the acquisition of the company’s sixth Aframax tanker vessel, to be renamed M/T P. Sophia, through a second advance of up to approximately $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 20 consecutive quarterly installments of $0.8 million each, and a balloon installment of $15.9 million payable concurrent with the 20th 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.
“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,” Andreas Michalopoulos, CEO of Performance Shipping, said. “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.”
