Loan & DebtJun 29, 2026, 04:32 PM
Performance Shipping Bonds Become Senior Unsecured
AI Summary
Performance Shipping Inc. announced that its bondholders have approved amendments to the terms of its 9.875% senior secured bonds. These amendments will convert the bonds into senior unsecured obligations by releasing existing security, including ship mortgages on two vessels. The changes also remove use of proceeds restrictions on vessel sales and increase the minimum liquidity covenant from US$20.0 million to US$30.0 million. The company will pay a one-time amendment fee of 0.325% on the US$150.0 million nominal amount, with the CEO stating the changes reflect improved credit quality and fleet enhancements.
Key Highlights
- Bondholders approved amendments to convert 9.875% senior secured bonds to senior unsecured.
- Existing security, including ship mortgages on P. Monterey and P. Sophia, will be released.
- Minimum liquidity covenant increased from US$20.0 million to US$30.0 million.
- Company to pay a one-time amendment fee of 0.325% on the US$150.0 million nominal bond amount.
- Fleet size increased by two vessels, reducing average age to six years.
- Contract backlog doubled to almost US$0.5 billion.
- Required daily charter rate for uncontracted days ranges from US$0 (2027) to US$11,600 (2029).
Price Impact
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