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ATHENS - Performance Shipping Inc. (NASDAQ:PSHG), a profitable shipping company with impressive gross profit margins of 71%, announced Wednesday it has successfully placed $100 million of bonds in the Nordic bond market, with plans to list the securities on the Oslo Stock Exchange. According to InvestingPro analysis, the company currently holds more cash than debt on its balance sheet.
The bonds, maturing in July 2029, will pay a fixed coupon of 9.875% per annum, payable semi-annually, and were priced at 97% of par. The offering is secured in part by first priority mortgages over the company’s two oldest tanker vessels, which are currently unencumbered. With an EBITDA of $52.26 million in the last twelve months, the company demonstrates solid operational performance.
Expected to close on July 17, 2025, subject to customary closing conditions, the bond proceeds will be used for tanker acquisitions or bond repurchases, according to the company’s statement.
The securities will be offered in the United States only to qualified institutional buyers under Rule 144A of the Securities Act of 1933, and outside the U.S. to non-U.S. persons pursuant to Regulation S. The bonds will not be registered under the Securities Act or state securities laws.
Performance Shipping, a global provider of shipping transportation services through its ownership of tanker vessels, employs its fleet on spot voyages, through pool arrangements, and on time charters. Trading significantly below its Fair Value according to InvestingPro analysis, the company maintains a notably low Price-to-Book ratio of 0.07. Get access to 6 more exclusive InvestingPro Tips for PSHG and detailed financial analysis by subscribing today.
The information in this article is based on a press release issued by the company.
In other recent news, Performance Shipping Inc. announced it has secured a refinancing deal with Alpha Bank A.E. to address approximately $29.75 million in existing debt. This arrangement will refinance debt secured by two of its vessels, M/T P. Long Beach and M/T P. Aliki, under terms that include an interest rate of SOFR plus 1.90% per annum. The repayment plan consists of 20 quarterly installments of $1.05 million each, with a final balloon payment of $8.75 million due in mid-2030. The company highlighted that the new agreement reduces its average payable margins by 23% compared to previous loan agreements, while extending loan maturities by over two and a half years. Performance Shipping emphasized that there are no substantial debt maturities scheduled before mid-2030, indicating a strong financial position. The refinancing deal remains subject to customary closing conditions and the execution of a final loan agreement.
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