Performance Shipping Inc., a global shipping company specializing in the ownership of tanker vessels, announced that it has entered into an agreement for a secured term loan facility of up to US$37.4 million with Piraeus Bank S.A. through two separate wholly-owned subsidiaries of the Company. 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 consecutive quarterly installments. The first four installments will be equal to US$1.5 million each, the remaining sixteen installments will be equal to US$1 million each, and a balloon installment of US$15.4 million will be payable concurrent with the twentieth quarterly installment, within five years from the drawdown date. The Facility is secured by, among other things, a guarantee of the Company and first priority mortgages over the M/T P. Kikuma and M/T P. Monterey.
Commenting on the Facility, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:“Our entry into this agreement with Piraeus Bank follows our announced acceptance of the offer letter from Piraeus Bank on November 9, 2022 and 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 this facility upon delivery of the M/T P. Monterey.”