Performance Shipping Inc. Secures $100 Million in Bond Offering
Introduction to Performance Shipping Inc.
Performance Shipping Inc. is a dynamic global provider of shipping transportation services, specializing in the ownership of tanker vessels. The company strategically operates its fleet through various arrangements, including spot voyages and time charters. With a focus on expanding its capabilities, Performance Shipping is positioned to capitalize on industry opportunities.
Recent Bond Offering Details
Recently, Performance Shipping Inc. announced a significant achievement: the successful placement of $100 million in bonds within the Nordic bond market. This notable bond issuance signifies the company’s confidence in its strategic direction and future growth. The bonds are projected to be listed on the Oslo Stock Exchange, enhancing their visibility and tradability.
Terms of the Bond Offering
The bonds come with a maturity period set for July 2029 and feature an attractive fixed coupon rate of 9.875% per annum. Interest payments will occur semi-annually in arrears, providing investors with consistent returns. Furthermore, these bonds were issued at 97% of par value and are secured by first priority mortgages on Performance Shipping's two oldest tanker vessels, which are currently unencumbered.
Use of Proceeds from the Bond Offering
The funds raised through this bond offering are earmarked for critical investments within the company. Specifically, the net proceeds will be utilized for tanker acquisitions to expand the fleet as well as potential bond repurchases. This strategic allocation of resources highlights Performance Shipping's commitment to strengthening its market presence.
Bond Offering Distribution and Regulatory Considerations
This bond offering is subject to strict regulations. It is being made available in the United States exclusively to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933. For investors outside the U.S., the bonds will be offered to non-U.S. persons under Regulation S of the same act. Importantly, these bonds will not be registered under the Securities Act or various state securities laws, indicating that they cannot be offered or sold within the United States without proper registration or exemptions.
Company Overview and Operations
Performance Shipping Inc. operates under the principles of efficiency and service excellence. With a robust fleet of tanker vessels, the company is pivotal in the global shipping landscape. By leveraging various operational strategies, Performance Shipping uniquely positions itself to adapt to market fluctuations and demands effectively.
Factors Influencing Performance and Future Outlook
Several external factors can significantly influence the operational performance of shipping companies like Performance Shipping. Elements such as global economic trends, changes in demand for tanker shipping, fluctuations in oil production, and geopolitical conditions all play a crucial role. The company remains focused on monitoring these variables to strategically navigate the complexities of the global shipping market.
Investor Relations and Corporate Governance
Performance Shipping Inc. emphasizes transparency and accountability in its operations. The company maintains open lines of communication with its stakeholders, conveying important information regarding its financial performance and strategic initiatives. Led by Chief Executive Officer Andreas Michalopoulos and supported by a proactive investor relations team, the company prioritizes stakeholder engagement.
Contact Information
For further inquiries, you can contact Andreas Michalopoulos, Chief Executive Officer, at +30-216-600-2400 or email him at amichalopoulos@pshipping.com. Additionally, Edward Nebb from Comm-Counsellors, LLC is available for media relations at +1-203-972-8350 or enebb@optonline.net.
Frequently Asked Questions
What is the recent bond offering amount announced by Performance Shipping Inc.?
The company has successfully placed $100 million in bonds in the Nordic bond market.
What is the maturity date for the new bonds issued?
The bonds are set to mature in July 2029.
What will be the coupon rate for the bonds?
The bonds will pay a fixed coupon of 9.875% per annum, with interest paid semi-annually.
How does Performance Shipping Inc. plan to use the proceeds from the bond offering?
The funds will be utilized for tanker acquisitions and bond repurchases.
Who can invest in these bonds?
The bonds are available to qualified institutional buyers in the U.S. and non-U.S. persons outside the U.S., under specific regulatory frameworks.
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