Performance Shipping Inc., a global shipping company specializing in the ownership of tanker vessels, announced that it has accepted an offer letter whereby it intends to enter into an agreement for a term loan facility of up to US$37.4 million with Piraeus Bank S.A. (the “Facility”) through two separate wholly-owned subsidiaries of the Company. The Facility will be drawn in two simultaneous advances upon delivery of the previously announced vessel the Company has agreed to acquire, the M/T Phoenix Beacon, to be renamed P. Monterey. Proceeds from the Facility will be used to refinance a portion of an existing term loan facility for the M/T P. Kikuma through a first advance of up to about US$7.8 million and to partially finance the M/T P. Monterey, through a second advance of up to about US$29.6 million.

This Facility will carry an interest rate of SOFR plus 2.45% per annum and will be repayable in twenty (20) consecutive quarterly installments. The first four (4) installments will be equal to US$1.5 million each, the remaining sixteen (16) installments will be equal to US$1 million each, and concurrent with the twentieth quarterly installment, within five years from the drawdown date, the Company will owe a balloon payment of US$15.4 million. 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.

Commenting on this indicative offer, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:

“This offer letter from Piraeus Bank demonstrates the depth of our long term relationships with our lenders and the use of other collateral vessels to secure new loan facilities with long dated maturities and competitive terms. We expect to drawdown the facility in early December to consummate the financing of M/T P. Monterey. The delivery of this new and BWTS fitted tanker in our fleet along with its 24 month time charter contract at US$32,000 per day coupled with the competitive loan will contribute strong and predictable cashflows to our Company going forward.”
Source: Performance Shipping Inc.