Performance Shipping seals $20m refinancing

Greek tanker owner Performance Shipping has refinanced its existing loan from 2019, in a deal with Nordea Bank for a revolving credit of up to $20m.

The Nasdaq-listed firm said it intends to use the proceeds to repay the current $18.8m loan with Nordea secured by vessels P Blue Moon and P Briolette and the rest for general corporate and working capital requirements.

The five-year revolving credit, maturing in 2028, will be repayable in quarterly instalments of $833,332 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.

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, said Andreas Michalopoulos, the chief executive of Performance Shipping.

The owner of eight tankers and one LR2 under construction in China reported a second-quarter net profit of $18.4m on revenue of $31.5m against $3.9m for the same period in 2022.