Loan & DebtJun 29, 2026, 09:28 AM
Performance Shipping Amends Bond Terms, Becomes Unsecured
AI Summary
Performance Shipping Inc. announced the approval of amendments to its 9.875% senior secured bonds, transforming them into senior unsecured obligations. This change includes the release of existing security, removal of use of proceeds restrictions, and an increase in the minimum liquidity covenant from $20.0 million to $30.0 million. The company will pay a one-time amendment fee of 0.325% of the $150.0 million nominal bond amount. CEO Andreas Michalopoulos stated that these amendments reflect a significant improvement in the company's credit quality, supported by fleet expansion, reduced average age, and a doubled contract backlog.
Key Highlights
- Bonds become senior unsecured obligations, releasing existing security.
- Minimum liquidity covenant increased from $20.0 million to $30.0 million.
- Company to pay a one-time amendment fee of 0.325% of the $150.0 million nominal bond amount.
- Fleet increased by two vessels, reducing average age to six years.
- Contract backlog doubled to almost $500 million.
- Average daily charter rate required for open uncontracted days ranges from $0 (2027) to $11,600 (2029).
Price Impact
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