Performance Shipping secures $29.75 million refinancing with Alpha Bank

ATHENS - Performance Shipping Inc. (NASDAQ:PSHG), a tanker vessel operator with a market capitalization of $23.5 million, announced Thursday it has finalized an agreement to refinance its existing $29.75 million loan facility with Alpha Bank S.A. According to InvestingPro analysis, the company maintains strong financial health with more cash than debt on its balance sheet.

The refinancing, executed through two wholly-owned subsidiaries, covers the outstanding loan balance previously secured by the vessels M/T P. Long Beach and M/T P. Aliki. This follows the company’s acceptance of a commitment letter from Alpha Bank announced on June 24. With an impressive gross profit margin of 71.2%, the company demonstrates robust operational efficiency.

According to the press release statement, the new facility carries an interest rate of SOFR plus 1.90% per annum. Repayment terms include 20 consecutive quarterly installments of $1.05 million each, with a final balloon payment of $8.75 million due alongside the twentieth installment in mid-2030.

Performance Shipping specializes in the ownership of tanker vessels and employs its fleet through various arrangements including spot voyages, pool arrangements, and time charters.

The company did not disclose any specific plans for the use of the refinanced capital in its announcement.

Performance Shipping trades on the Nasdaq exchange under the ticker PSHG.

In other recent news, Performance Shipping Inc. has successfully placed $100 million in bonds in the Nordic bond market. These bonds, set to mature in July 2029, will offer a fixed coupon of 9.875% per annum, paid semi-annually. The bonds were priced at 97% of their par value and are secured by first priority mortgages on the company’s two oldest tanker vessels. Additionally, Performance Shipping has secured a commitment letter for a refinancing deal with Alpha Bank A.E. This agreement aims to refinance approximately $29.75 million of existing debt. The refinancing will cover debt secured by two of the company’s vessels, M/T P. Long Beach and M/T P. Aliki. The refinancing arrangement is still subject to customary closing conditions and the execution of a final loan agreement. These financial moves reflect recent developments for Performance Shipping Inc.

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