- Greek tanker operator Performance Shipping has raised $100 million through the Nordic bond market to support fleet expansion or repurchase existing bonds.
- The bonds, maturing in July 2029, carry a 9.875% annual fixed coupon and were issued at 97% of par.
- The bonds are secured by first-priority mortgages on the company’s two oldest, currently unencumbered, tanker vessels.
Performance Shipping, a Greek tanker company listed on NASDAQ, is preparing for strategic growth after successfully raising $100 million through the Nordic bond market. The company announced that the capital raised will be allocated either toward the acquisition of additional tanker vessels or for the repurchase of outstanding bonds, according to Splash247.
Listing Planned on Oslo Stock Exchange
An application will be submitted to list the bonds on the Oslo Stock Exchange. These new bonds are set to mature in July 2029 and offer investors a fixed annual coupon of 9.875%, payable semi-annually in arrears. The pricing was finalized at 97% of par value, making the offer attractive for investors seeking yield-backed maritime investments.
Secured by Priority Mortgages on Tanker Assets
To enhance the bond’s security profile, the issue is partially backed by first-priority mortgages on the company’s two oldest tanker vessels. These ships were previously unencumbered, making them valuable assets for securing the financing. The move reflects Performance Shipping’s efforts to strategically leverage its asset base while positioning for further fleet growth and operational flexibility.
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Source: Splash247
