Performance Shipping secures sale, leaseback agreement for Aframax tanker

Performance Shipping (PSHG) has entered into a sale and leaseback agreement with an unaffiliated third party for a previously announced newbuild LR2 Aframax tanker vessel. As announced on December 20, 2023, this vessel is one of two newbuilding LNG-ready, scrubber-fitted LR2 product/crude oil tanker vessels of approximately 114,000 dwt expected to be delivered to the Company in the first quarter of 2026. The bareboat financing amount totals approximately $45.39 million. As part of this agreement, the Vessel will be sold and then chartered back to the Company on a bareboat basis for a ten-year period starting from delivery from the shipyard. The bareboat charter includes 120 monthly installments at a fixed rate of $211,500.00 plus a variable rate calculated monthly at an implied interest rate of SOFR plus 2.1% per annum. Additionally, a balloon payment of approximately $20 million will be due together with the last installment for the repurchase of the Vessel. The Company has continuous options to repurchase the Vessel at predetermined rates following the second anniversary of the bareboat charter. As previously announced on March 12, 2024, the Vessel has been chartered to Clearlake Shipping Pte Ltd. for a period of five years, upon delivery of the Vessel, at a rate of $31,000 per day and an option to extend for a 6th and 7th year at a base rate plus profit sharing if declared at that time by the charterer.