Performance Shipping Inc. Secures New Financing from Alpha Bank

Author: Owen Jenkins Updated: 06-24-2025 09:33 AM

Performance Shipping Inc. Announces New Financing Agreement

Performance Shipping Inc. (NASDAQ: PSHG), a global leader in tanker vessel operations, recently revealed its acceptance of a commitment letter from Alpha Bank A.E. to initiate the refinancing of its existing loan amounting to US$29,750,000. This refinancing agreement involves two wholly-owned subsidiaries of Performance Shipping and is contingent upon customary closing conditions along with the signing of a final loan agreement.

Refinancing Details and Financial Implications

As part of this refinancing strategy, the proceeds will be directed towards fully settling the outstanding debt currently held with Alpha Bank, which is secured against the vessels M/T P. Long Beach and M/T P. Aliki. The new facility will carry an interest rate of SOFR plus 1.90% per annum. This competitive rate illustrates the bank's confidence in Performance Shipping's financial health.

Repayment Structure and Future Outlook

The repayment of the new facility will occur through twenty consecutive quarterly installments of US$1,050,000. Upon completion of these payments, a balloon payment of US$8,750,000 is expected to be made in about mid-2030. This repayment structure not only facilitates a manageable financial plan but also alleviates immediate financial pressures on the company.

CEO Andreas Michalopoulos Comments

Andreas Michalopoulos, the Chief Executive Officer of Performance Shipping, expressed his satisfaction regarding the refinancing agreement. He noted that the commitment from Alpha Bank highlights the strong relationships cultivated with lending partners and emphasizes the company's robust financial standing. Michalopoulos remarked on the substantial reduction in financing costs, with a decrease in average payable margins by 23% compared to prior loan agreements, while ensuring the amortization profile remains consistent.

Benefits of the New Financing

The extension of loan maturities beyond 2030 provides Performance Shipping with an advantageous position, as there are no significant payments due before this period. This stability allows the company to navigate ongoing market challenges while focusing on strategic growth opportunities.

About Performance Shipping Inc.

Performance Shipping Inc. is dedicated to providing comprehensive shipping transportation services through its diverse fleet of tanker vessels. Engaging in spot voyages, pool arrangements, and time charters, the company excels in offering flexible and reliable shipping solutions to its clients worldwide.

Frequently Asked Questions

What financing deal did Performance Shipping announce?

Performance Shipping announced a refinancing agreement with Alpha Bank A.E. to refinance an existing $29.75 million loan.

How will the proceeds from the refinancing be used?

The proceeds will be utilized to fully refinance the current indebtedness secured against the M/T P. Long Beach and M/T P. Aliki vessels.

What are the terms of the new loan?

The new facility will have an interest rate of SOFR plus 1.90% per annum and will be repaid in twenty quarterly installments.

What does the CEO say about the refinancing?

CEO Andreas Michalopoulos highlighted the positive impact of the refinancing in reducing financing costs and extending loan maturities, which positions the company favorably for growth.

What is the focus of Performance Shipping Inc.?

The company specializes in tanker vessel operations, providing transportation services across various shipping arrangements globally.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

Beyond work, I like to hike, play the guitar, and spend time with my family. I think that balance is crucial and want to encourage people to strike a balance between their financial aspirations and their hobbies. I want to help people succeed and achieve financial security through my work, so having a good influence.

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