ATHENS – Performance Shipping Inc. (NASDAQ:PSHG) announced today that it obtained approval to amend the terms of its 9.875% senior secured bonds, according to a press release statement.
The amendments convert the bonds from secured to senior unsecured obligations by releasing existing security, including ship mortgages over vessels P. Monterey and P. Sophia. The changes also remove use of proceeds restrictions upon sale of a collateral vessel and increase the minimum liquidity covenant from $20.0 million to $30.0 million.
The company agreed to pay a one-time amendment fee of 0.325% of the $150.0 million nominal amount of the bonds. The amendments will be documented through an amendment and restatement agreement between the company and the bond trustee.
The bonds were originally issued under terms dated July 15, 2025. The amendments will be formalized through an agreement with the bond trustee.
Andreas Michalopoulos, chief executive officer, stated the approval changes the bond structure from partly secured to unsecured. He said the company added four vessels to its fleet with three-to-seven-year charter contracts and sold its two oldest vessels in the 12 months since the bonds were issued. The fleet increased by two vessels with a reduced average age of six years and a contract backlog of approximately half a billion dollars. The company carries total debt of $313.93 million with a debt-to-equity ratio of 0.94, though it maintained profitability over the last twelve months with an impressive gross profit margin of 69.1%. InvestingPro analysis suggests the stock is currently undervalued, with shares trading at $1.67 near their 52-week low of $1.62.
Performance Shipping provides shipping transportation services through its ownership of tanker vessels. The company operates its fleet on spot voyages, through pool arrangements and on time charters.
The bonds were not registered under the U.S. Securities Act of 1933 and may not be offered or sold within the United States absent registration or an applicable exemption.
In other recent news, Performance Shipping Inc. has announced significant developments involving both new and existing vessels. The company has entered into long-term time charter agreements with Repsol Trading S.A. for two Suezmax tanker newbuilds under construction in China. The first vessel is chartered for seven years at a daily rate of $35,000, while the second is chartered for five years at $36,850 per day, with both payments made monthly in advance. These vessels are expected to be delivered in October 2028 and May 2029, respectively, and will begin their charters upon delivery.
Additionally, Performance Shipping has agreed to sell its 2010-built Aframax tanker, M/T P. Aliki, to Trafigura Maritime Logistics Pte. Ltd. for $42.65 million. This vessel, with a deadweight tonnage of 105,304, is scheduled for delivery to the new owners around the end of the third quarter of 2026, following the conclusion of its current time charter with Pakistan National Shipping Corporation. The sale is still subject to customary closing conditions. These recent developments highlight Performance Shipping’s strategic moves in the shipping industry.
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