Performance Shipping Inc 6-K, filed Aug 7, 2023
Performance Shipping Inc. (PSHG)
6-K
2023-08-07
For: 2023-08-07
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Added on
April 07, 2026
About this 6-K
Performance Shipping Inc filed this 6-K on August 7, 2023.
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August 2023
Commission File Number: 001-35025
PERFORMANCE SHIPPING INC.
(Translation of registrant's name into English)
373 Syngrou Avenue
175 64 Palaio Faliro
Athens, Greece
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ___
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)7: ___
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the
laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission
filing on EDGAR.
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached to this report on Form 6-K (this “Report”) as Exhibit
99.1 is a copy of the press release of Performance Shipping Inc. (the “Company”) dated August 7, 2023 titled, “Performance Shipping Inc. Announces Entry Into New Revolving Credit Facility With Nordea Bank At Favorable Terms Resulting In No
Debt Maturities Prior To Mid-2027.”
The information contained in this Report on Form 6-K (excluding the statements attributed to the Company’s Chief Executive Officer) is hereby incorporated by reference into the
Company’s registration statement on Form F-3 (File No. 333-197740), filed with the U.S. Securities and Exchange Commission (the “SEC”) with an effective date of August 13, 2014, the Company’s registration statement on Form F-3 (File No.
333-266946), filed with the SEC with an effective date of August 29, 2022, and the Company’s registration statement on Form F-3 (File No. 333-271398), filed with the SEC with an effective date of May 4, 2023.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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PERFORMANCE SHIPPING INC.
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(Registrant)
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Dated: August 7, 2023
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/s/ Andreas Michalopoulos
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By: Andreas Michalopoulos
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Chief Executive Officer
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Exhibit 99.1
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Corporate Contact:
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Andreas Michalopoulos
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Chief Executive Officer, Director and Secretary
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Telephone: +30-216-600-2400
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Email: amichalopoulos@pshipping.com
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Website: www.pshipping.com
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For Immediate Release
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Investor and Media Relations:
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Edward Nebb
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Comm-Counsellors, LLC
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Telephone: + 1-203-972-8350
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Email: enebb@optonline.net
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PERFORMANCE SHIPPING INC. ANNOUNCES ENTRY INTO NEW REVOLVING CREDIT FACILITY WITH NORDEA BANK AT FAVORABLE TERMS RESULTING IN NO DEBT MATURITIES
PRIOR TO MID-2027
ATHENS, GREECE, August 7, 2023 – Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker
vessels, today announced that it has successfully refinanced its existing loan facility dated July 24, 2019, by entering into an agreement for a Revolving Credit Facility (the “RCF”) of up to US$20,000,000 with Nordea Bank Abp, filial i Norge
(“Nordea”), 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 US$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 US$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.
Commenting on the RCF, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:
“Our entry into this agreement with Nordea is indicative of the strong long-term relationships we maintain with our lenders. Their commitment and continued support
of our Company are clearly reflected in the competitive terms and flexible structure of this revolving credit facility. By extending the previously existing loan facility until 2028, we enhance our liquidity position significantly, with no other
loan maturities scheduled prior to July 2027. The revolving structure allows us to redraw, subject to a loan-to-value ratio, up to the full amount of the facility at any time. The market’s positive expectations of a sustainable tanker freight
rate environment, coupled with our lender’s confidence in our Company’s strong financial position, are evident through this agreement. We are excited about the opportunities this refinancing brings and remain committed to delivering value to our
shareholders.
“As previously announced, these recent developments have positioned our Company favorably to capitalize on our robust balance sheet. This is showcased through the
implementation and continued progress of our US$2 million share buyback program, which we strongly believe is in the best interests of both our Company and our shareholders.”
About the Company
Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company employs its fleet on spot
voyages, through pool arrangements and on time charters.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor
protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include, but are not limited to, statements concerning plans, objectives, goals,
strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,”
“will,” “may,” “should,” “expect,” “targets,” “likely,” “would,” “could,” “seeks,” “continue,” “possible,” “might,” “pending” and similar expressions, terms or phrases may identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without
limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are
inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs, or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the
forward-looking statements include, but are not limited to: the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in
the tanker shipping industry, changes in the supply of vessels, changes in worldwide oil production and consumption and storage, changes in our operating expenses, including bunker prices, crew costs, drydocking and insurance costs, our future
operating or financial results, availability of financing and refinancing including with respect to vessels we agree to acquire, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from
pending or future litigation, general domestic and international political conditions, the length and severity of epidemics and pandemics, including the ongoing outbreak of the novel coronavirus (COVID-19) and its impact on the demand for seaborne
transportation of petroleum and other types of products, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political
conditions or events, including “trade wars”, armed conflicts including the war in Ukraine, the imposition of new international sanctions, acts by terrorists or acts of piracy on ocean-going vessels, potential disruption of shipping routes due to
accidents, labor disputes or political events, vessel breakdowns and instances of off-hires and other important factors. Please see our filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks
and uncertainties.