Performance Shipping enters new revolving credit facility

Performance Shipping refinanced its existing loan facility dated July 24, 2019, by entering into an agreement for a Revolving Credit Facility of up to $20,000,000 with Nordea Bank Abp, filial i Norge, through separate wholly-owned subsidiaries of the Company, thereby extending the loan’s maturity date to 5 years from the signing of the agreement. Proceeds from the new RCF will be used first towards payment of the currently outstanding indebtedness of $18.8 million under the previously existing loan agreement with Nordea, secured by first priority mortgages over the M/T P. Blue Moon and M/T P. Briolette, and second towards payment of the Company’s general corporate and working capital requirements. The RCF, maturing in 2028, will be repayable in quarterly instalments of $833,332 for a period of 5 years and will carry an interest rate of SOFR plus 2.50% per annum, reducing the financing cost for the Company compared to the previously existing loan agreement. The flexible structure of this RCF provides the Company with the ability to optimize the drawdown timing and repayment schedule based on prevailing market conditions and circumstances.