Performance Shipping Inc. Secures $50 Million Tap Issue in Senior Secured Bonds

summarizeSummary

Performance Shipping Inc. announced a successful $50 million tap issue in its senior secured bonds, significantly boosting its capital for general corporate purposes.

check_boxKey Events

• Successful $50 Million Tap Issue

  The company successfully placed a USD 50 million tap issue in its outstanding senior secured bond due July 17, 2029.

• High Interest Rate and Premium Pricing

  The bonds carry a fixed coupon of 9.875% per annum, payable semi-annually, and the tap issue was priced at 103.00% of par value.

• Increased Total Outstanding Bonds

  Following this tap issue, the total outstanding amount under the Bonds is now USD 150 million.

• Use of Proceeds

  Net proceeds from the tap issue will be used for general corporate purposes according to the terms of the Bonds.

auto_awesomeAnalysis

Performance Shipping Inc. has successfully raised $50 million through a tap issue in its senior secured bonds. This is a highly significant financing event given the company's market capitalization, providing a substantial capital infusion for general corporate purposes. While the 9.875% fixed coupon rate represents a considerable interest expense, the successful placement at a premium (103.00% of par) and initiation by a reverse inquiry suggest strong investor demand and confidence in the company's ability to service this debt. This capital raise significantly bolsters the company's liquidity and operational capacity, but also substantially increases its leverage.