Performance Shipping Inc., a global shipping company specializing in the ownership of tanker vessels, announced that it has accepted a commitment letter whereby it intends to enter into an agreement for a refinancing of the existing loan outstanding of US$29,750,000 with Alpha Bank A.E. (the “Facility”) through two 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 in full the existing indebtedness maintained with Alpha Bank and secured by the M/T P. Long Beach and the M/T P. Aliki. This Facility shall bear interest at the rate of SOFR plus 1.90% per annum.

The Facility will be repayable in twenty (20) consecutive quarterly installments of US$1,050,000 each, and concurrent with the twentieth quarterly installment, the Company will owe a balloon payment of US$8,750,000 in mid-2030.

Commenting on the refinancing facility, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:

“The commitment letter from Alpha Bank underscores our Company’s strong and enduring relationships with its lenders. The competitive terms of this refinancing loan facility reflect both our robust financial position and the continued confidence and support of our lending partners. Indicatively, our financing costs will be significantly reduced, with average payable margins decreasing by 23% compared to the existing loan agreements, while the amortization profile remains unchanged. Additionally, with the extension of loan maturities by more than two and a half years the Company has no substantial debt maturities scheduled prior to mid-2030.”
Source: Performance Shipping Inc.