Nasdaq-listed Performance Shipping has agreed a term loan of close to $40m with Piraeus Bank to partially finance the acquisition of its sixth aframax tanker and to refinance the existing loan with the same bank.
The Greek owner said around $24.6m will be used to pay for the 2009-built Maran Sagitta, acquired in June from Angelicoussis Shipping Group’s Maran Tankers for close to $27.6m. The 105,071 dwt vessel is to be renamed P Sophia.
Meanwhile, approximately $7.3m will be used to refinance the existing term loan, releasing the 2011-built aframax P Yanbu from its collateral package and switching to the new one.
The loan will bear interest at the rate of Libor plus a margin of 2.7% per year and will be secured by, among other things, a guarantee from the company and first priority mortgages over the P Yanbu and the new addition, P Sophia. The deal will see Performance Shipping pay twenty quarterly installments of $0.8m each, and a balloon installment of $15.9m payable concurrent with the last installment.
“With the financing of the acquisition of our sixth aframax tanker now secured, we are well-positioned to capitalise on the current favorable tanker charter market with spot charter rates for aframax tankers quoted at approximately $28,000 and strong fundamentals going forward,” remarked Andreas Michalopoulos, chief executive of Performance Shipping.