PSHG - Performance Shipping rallies on fifth Aframax tanker acquisition

Performance Shipping (PSHG) +29.4% PM, through its separate wholly-owned subsidiary inked a Memorandum of Agreement to purchase the M/T Kalamas, a 105,400 dwt Aframax tanker vessel built in 2011 by Sumitomo Heavy Industries Marine & Engineering from an unaffiliated third party seller for $22M.The vessel, the company's fifth Aframax tanker, is expected to be delivered between Nov. 15 and Dec. 22, 2020, and will be renamed M/T P. Yanbu.Acquisition will be financed with $13.2M cash on hand and $8.8M from the recently announced term loan facility with Piraeus Bank.Post the delivery, the cargo-carrying capacity of the company's fleet will have increased by 23.9% to ~546,094 deadweight tons."The acquisition will, among other things, reduce our indicative estimated daily cashflow breakeven rate by ~$3K to $16K per vessel per day, thereby meaningfully enhancing our ability to pay dividends to our shareholders pursuant to our variable dividend policy," CEO Mr. Andreas Michalopoulos commented.

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Performance Shipping rallies on fifth Aframax tanker acquisition