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
delivering value to our shareholders.
“As previously announced, these recent
developments have positioned our Company favorably to capitalize on
our robust balance sheet. This is showcased through the
implementation and continued progress of our US$2 million share
buyback program, which we strongly believe is in the best interests
of both our Company and our shareholders.”
About the Company
Performance Shipping Inc. is a global provider
of shipping transportation services through its ownership of tanker
vessels. The Company employs its fleet on spot voyages, through
pool arrangements and on time charters.
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.
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
vessels we agree 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.
Corporate Contact:
Andreas Michalopoulos
Chief Executive Officer, Director and Secretary
Telephone: +30-216-600-2400
Email: amichalopoulos@pshipping.com
Website: www.pshipping.com
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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