Performance Shipping has finalised its second loan with Alpha Bank since the beginning of November, taking its tab with the financial institution to more than $40m to buy two vessels.
The Andreas Michalapoulos-led company on Thursday agreed to a secured term loan facility of up to about $22m with the Athens-based lender to cover half of the $43.8m cost to buy the 105,400-dwt tanker Fos Hamilton (built 2013) from Latsco Shipping.
The $22m loan followed an $18.3m term loan facility with Alpha Bank that Performance disclosed on 1 November to pay for half of the $36m purchase price for the 105,304-dwt P. Aliki (built 2010).
The $22m loan will have an interest rate of the secured overnight financing rate plus 2.35% per year and will be repayable in 20 consecutive quarterly instalments of $550,000 each plus a final payment of $11m in 2027.
The loan is secured by, among other things, a company guarantee and a first-priority mortgage over the ship, to be renamed P Long Beach. The ship is set to be delivered to Performance in mid-December.
“Our entry into this agreement … is indicative of the continued confidence in our company demonstrated by our new lender with the use of another collateral vessel to secure a new loan facility,” chief executive Andreas Michalapoulos said.
TradeWinds reported that New York-listed, Athens-based Performance signed a commitment letter with Alpha Bank for the $22m loan on 29 November.
TradeWinds previously reported that the tanker owner planned to pay for the other half of the Fos Hamilton purchase with money from the sale of the 115,600-dwt P Fos (built 2007).
Performance initially said that it would use the money from the sale of that ship, which sold for $34m and net the company $25m in cash, to buy another ship.
Performance announced on 17 November that it acquired the Fos Hamilton from Latsco Shipping, which bought the ship for $29.5m in 2018.
The ship had a market value of $48.7m when Performance bought it as its fourth acquisition for 2022, according to VesselsValue.
