Performance Shipping agrees refinancing deal with Greek bank

Nasdaq-listed Greek tanker owner and operator Performance Shipping has agreed to the refinancing of an existing outstanding loan of $29.75m with compatriot Alpha Bank.

Proceeds from the facility will be used to fully refinance the existing debt maintained with Alpha Bank, secured by the 2013-built aframax P. Long Beach and the 2010-built LR2 P. Aliki.

The facility, agreed through two separate wholly owned subsidiaries of Performance Shipping, shall bear interest at the rate of SOFR plus 1.90% per annum.

It will be repayable in 20 consecutive quarterly instalments of $1.05m each, and concurrent with the final quarterly instalment, the shipping firm will owe a balloon payment of $8.75m in mid-2030.

“Our financing costs will be significantly reduced, with average payable margins decreasing by 23% compared to the existing loan agreements, while the amortisation profile remains unchanged. Additionally, with the extension of loan maturities by more than two and a half years, the company has no substantial debt maturities before mid-2030,” said Andreas Michalopoulos, CEO of Performance Shipping.