Performance Shipping agrees refinancing deal with Greek bank
Performance Shipping Secures $29.75 Million Loan Refinancing
Performance Shipping, a Nasdaq-listed Greek tanker operator, has finalized a refinancing deal for an existing loan of $29.75 million with Alpha Bank. This strategic move will allow the company to fully refinance its current debt, which is backed by two vessels: the aframax P. Long Beach and the LR2 P. Aliki. The refinancing is set to enhance the company’s financial position by lowering its financing costs.
Details of the Refinancing Agreement
The refinancing agreement involves two wholly owned subsidiaries of Performance Shipping and will feature an interest rate of SOFR plus 1.90% annually. The loan will be repaid in 20 quarterly installments of $1.05 million each. Upon completion of the final installment, a balloon payment of $8.75 million is due in mid-2030. This new financial structure not only reduces the company’s average payable margins by 23% compared to previous loan agreements, but it also maintains the existing amortization profile.
Andreas Michalopoulos, CEO of Performance Shipping, highlighted the benefits of this refinancing, stating, “Our financing costs will be significantly reduced, with average payable margins decreasing by 23% compared to the existing loan agreements.” He also noted that the extensions of loan maturities will alleviate immediate financial pressures, ensuring that the company faces no substantial debt maturities until mid-2030. This move positions Performance Shipping to navigate its financial future with greater flexibility and stability, allowing it to focus on its core operations.
