EuropeFinance and InsuranceTankers

Performance Shipping lines up $37m financing

Nasdaq-listed Greek tanker owner Performance Shipping has arranged a $37.4m loan with Piraeus Bank as part of its fleet expansion programme. The loan is expected to be drawn in two simultaneous advances upon delivery of the recently acquired Phoenix Beacon, to be renamed P Monterey

The company said it would use the proceeds to refinance a portion of an existing term loan for the 2007-built aframax P Kikuma through the first advance of up to about $7.8m and to partially finance the P Monterey, through the second advance of up to about $29.6m. The 2011-built vessel was bought for $35m from Phoenix Energy Navigation.

The loan is for five years, repayable in twenty quarterly installments, of which the first four will be $1.5m each, with the remaining sixteen equal to $1m each, and concurrent with the twentieth quarterly installment, the company will owe a balloon payment of $15.4m. This facility will carry a yearly interest rate of SOFR plus 2.45%.

Delivery of the bwts-fitted P Monterey is expected in early December, after which the vessel will go on a two-year charter with Glencore’s shipping arm ST Shipping and Transport, earning $32,000 per day.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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