Nasdaq-listed Performance Shipping is targeting another aframax buy after fixing new finance with Piraeus Bank.
The Greek owner of four aframaxes said the term loan facility gives it up to $31.5m of liquidity.
The loan refinances an existing facility for the 116,000-dwt sisters P Fos and P Kikuma (both built 2007) with Nordea Bank.
The first advance will be up to $22.5m. The loan also envisages a draw-down of $9m towards the purchase of a fifth ship. Interest is Libor plus a margin of 2.85%.
The cash will be repayable in 16 quarterly instalments of $1.1m, plus a balloon payment of $13.9m.
Costs cut
Nordea Bank has also agreed to amend a credit facility to reduce the quarterly instalments on the remaining $28.1m loan secured by the 105,000-dwt Blue Moon and Briolette (both built 2011).
The former Diana Containerships has transformed itself into a pure tanker player after selling its boxships.
Chief executive Andreas Michalopoulos said the Piraeus Bank facility is the second the company has secured since its change of strategy.
"This facility paves the way for the acquisition of our fifth aframax tanker and the reduction of our quarterly instalments to reduce our daily vessel cash break-even, thus further facilitating the payment of dividends pursuant to our variable dividend policy," he said.
After buying another vessel, Michalopoulos said Performance Shipping expects to bring its net debt down below 35% of the fleet value.
Michalopoulos became chief executive last month when he replaced the retired Simeon Palios.
The new boss had served as Performance Shipping’s deputy chief executive since 2019 and as its financial chief from when the company was formed in 2010.
He is married to Palios' youngest daughter, Aliki Paliou, who sits on Performance Shipping's board of directors.
