Performance Shipping Inc. Announces Successful Placement of USD 50 Million Tap Issue

Rhea-AI Summary

Performance Shipping (NASDAQ: PSHG) announced a successful placement of a USD 50 million tap issue in its outstanding senior secured bond due July 17, 2029 (ISIN NO0013607028) at a fixed coupon of 9.875% per annum, payable semi-annually.

The tap was priced at 103.00% of par following a reverse inquiry and is expected to close on January 26, 2026, subject to customary closing conditions. After the tap, total outstanding under the Bonds is USD 150 million. Net proceeds will be used for general corporate purposes. The bonds are being offered to qualified institutional buyers in the U.S. under Rule 144A and to non-U.S. persons under Regulation S and will not be registered under the Securities Act.

Positive

• Tap issue increases bond capacity by USD 50 million
• Tap priced at 103.00% of par, generating premium proceeds
• Total outstanding under the Bonds now USD 150 million

Negative

• Fixed coupon of 9.875% implies material interest expense
• Closing remains subject to customary conditions, creating execution risk
• Offer limited to Rule 144A/Reg S, restricting U.S. retail access

News Market Reaction

+4.98%

1 alert

+4.98% News Effect

+$1M Valuation Impact

$26M Market Cap

0.6x Rel. Volume

On the day this news was published, PSHG gained 4.98%, reflecting a moderate positive market reaction. This price movement added approximately $1M to the company's valuation, bringing the market cap to $26M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Tap issue size: USD 50 million Total bonds outstanding: USD 150 million Bond coupon rate: 9.875% per annum +5 more

8 metrics

Tap issue size USD 50 million Additional issuance of existing senior secured bond

Total bonds outstanding USD 150 million Total outstanding after tap issue

Bond coupon rate 9.875% per annum Fixed coupon on senior secured bond due July 17, 2029

Issue price 103.00% of par Pricing of the USD 50 million tap issue

Bond maturity date July 17, 2029 Maturity of outstanding senior secured bond

Expected closing date January 26, 2026 Scheduled closing of tap issue, subject to conditions

Share price $2.01 Pre-news price, 22.09% below 52-week high

Market cap $25,361,602 Equity value prior to bond tap announcement

Market Reality Check

Price: $2.05 Vol: Volume 86,780 is in line ...

normal vol

$2.05 Last Close

Volume Volume 86,780 is in line with the 20-day average of 88,200 (relative 0.98x). normal

Technical Shares at $2.01 are trading above the 200-day MA of $1.86 and 22.09% below the 52-week high.

Peers on Argus

Peers show mixed moves: CTRM +1.43%, EDRY +1.35%, HTCO +1.42%, USEA -3.35%, whil...

1 Down

Peers show mixed moves: CTRM +1.43%, EDRY +1.35%, HTCO +1.42%, USEA -3.35%, while GLBS is flat. This diverging pattern points to stock-specific drivers for PSHG.

Historical Context

5 past events · Latest: Dec 22 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 22	Tanker delivery	Positive	+2.7%	Second 2019-built Suezmax delivered, lifting fleet to twelve tankers.
Dec 15	Tanker delivery	Positive	-0.4%	First 2019-built Suezmax delivery with three-year Repsol charter.
Dec 05	Sale update	Negative	-7.1%	Forward sale of M/T P. Sophia lapsed; vessel retained in fleet.
Nov 25	Earnings report	Negative	-10.8%	Q3 2025 net income fell to $3.9M on $18.5M revenue.
Nov 06	Charter contracts	Positive	+1.4%	Three-year Repsol charters expected to add about $78M in revenue.

Pattern Detected

Price reactions to past company news have mostly aligned with the apparent news tone, with only one divergence out of five recent events.

Recent Company History

Over the last few months, Performance Shipping Inc. has focused on fleet expansion and long-term charter coverage. Deliveries of 2019-built Suezmax tankers in December 2025 increased the fleet to twelve vessels, backed by employment with Repsol Trading S.A. A potential forward sale of M/T P. Sophia lapsed on Dec 5, 2025, and Q3 2025 results showed net income of $3.9M on revenue of $18.5M. Earlier, three-year Repsol charters were expected to generate about $78M in gross revenue, lifting contracted backlog.

Market Pulse Summary

This announcement expands Performance Shipping’s existing Nordic bond by USD 50M to a total of USD 1...

Analysis

This announcement expands Performance Shipping’s existing Nordic bond by USD 50M to a total of USD 150M, maintaining a 9.875% fixed coupon and 2029 maturity. It follows prior use of debt funding alongside long-term charters and fleet growth. Investors may focus on the balance between enhanced liquidity for general corporate purposes and higher interest expense, watching future earnings, charter coverage, and utilization to gauge how effectively the additional capital is deployed.

Key Terms

senior secured bond, isin, rule 144a, regulation s, +3 more

7 terms

senior secured bond financial

"its outstanding senior secured bond due July 17, 2029, with ISIN"

A senior secured bond is a loan a company issues that is backed by specific assets and has priority over other debts if the company cannot pay, meaning holders are first in line to claim those assets. Investors care because this combination of pledge and priority typically makes these bonds safer than unsecured or lower-priority debt, similar to how a mortgage lender has a stronger claim on a house than a credit card company has on other property.

isin financial

"bond due July 17, 2029, with ISIN: NO0013607028 (the "Bonds")"

A 12-character International Securities Identification Number (ISIN) is a unique code that acts like a passport for a specific stock, bond or other tradable security so it can be identified worldwide. Investors and systems use it to ensure they are buying, selling and tracking the exact same instrument across exchanges and data feeds, which prevents costly mix-ups and makes portfolio reporting, settlement and regulatory checks simpler and more reliable.

rule 144a regulatory

"buyers in reliance on Rule 144A under the Securities Act of 1933"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

regulation s regulatory

"non-U.S. persons pursuant to Regulation S under the Securities Act"

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

qualified institutional buyers financial

"only to persons reasonably believed to be qualified institutional buyers"

Qualified institutional buyers are large organizations, like big investment firms or banks, that are allowed to buy certain types of investment opportunities not available to everyday investors. Their size and experience matter because it ensures they understand and can handle complex financial deals, making markets more efficient and secure.

u.s. securities act regulatory

"as amended (the “U.S. Securities Act”), and sold outside the United States"

A U.S. securities act is a federal law that requires companies to disclose clear, detailed information before offering stocks or bonds to the public and prohibits false or misleading statements. Think of it as a product label and consumer-protection rule for investments: it helps investors know what they’re buying and provides legal remedies if information is withheld or deceptive, which can affect confidence, pricing and the ability of companies to raise money.

regulation s under the securities act regulatory

"non-U.S. persons pursuant to Regulation S under the Securities Act"

Regulation S under the Securities Act is a set of U.S. rules that allow companies to sell securities to investors located outside the United States without registering those sales with the U.S. securities regulator, provided the offerings are not marketed to U.S. residents. For investors this matters because it determines whether a security was issued under an offshore exemption, which affects who can buy it, how easily it can be traded, and which legal protections and reporting rules apply—similar to buying a product that was sold only in a foreign market and may have different rules or support.

AI-generated analysis. Not financial advice.

ATHENS, Greece, Jan. 13, 2026 (GLOBE NEWSWIRE) -- Performance Shipping Inc. (NASDAQ: PSHG) (“we” or the “Company”), a global shipping company specializing in the ownership of tanker vessels, announced that it has successfully placed a USD 50 million tap issue in its outstanding senior secured bond due July 17, 2029, with ISIN: NO0013607028 (the "Bonds"), paying a fixed coupon of 9.875% per annum, payable semi-annually in arrears. Following the tap issue, the total outstanding amount under the Bonds is USD 150 million. The tap issue was priced at 103.00% of par value and was initiated by a reverse inquiry. The tap issue is expected to close on January 26, 2026, subject to customary closing conditions. Net proceeds from the tap issue will be used for general corporate purposes according to the terms of the Bonds.

The bonds as described in this press release will be offered in the United States or its territories only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “U.S. Securities Act”), and sold outside the United States only to non-U.S. persons pursuant to Regulation S under the Securities Act. The bonds will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Performance Shipping Inc., nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful, and is being issued in the United States pursuant to and in accordance with Rule 135c under the Securities Act.

About the Company

Performance Shipping Inc. is a global provider of shipping transportation services through its ownership of tanker vessels. The Company employs its fleet on spot voyages, through pool arrangements, and on time charters.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include, but are not limited to, statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts including with respect to the closing of the tap issue and the Company’s bonds. The words “believe," “anticipate," “intends," “estimate," “forecast," “project," “plan," “potential," “will," “may," “should," “expect," “targets," “likely," “would," “could," “seeks," “continue," “possible," “might," “pending” and similar expressions, terms or phrases may identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs, or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to: the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker shipping industry, changes in the supply of vessels, changes in worldwide oil production and consumption and storage, changes in our operating expenses, including bunker prices, crew costs, drydocking and insurance costs, our future operating or financial results, availability of financing and refinancing including with respect to vessels we agree to acquire, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, the length and severity of epidemics and pandemics, including COVID-19, and their impact on the demand for seaborne transportation of petroleum and other types of products, general domestic and international political conditions or events, including “trade wars”, armed conflicts including the war in Ukraine and the war between Israel and Hamas, the imposition of new international sanctions, acts by terrorists or acts of piracy on ocean-going vessels, potential disruption of shipping routes due to accidents, labor disputes or political events, vessel breakdowns and instances of off-hires and other important factors. Please see our filings with the US Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

Corporate Contact:
Andreas Michalopoulos
Chief Executive Officer, Director and Secretary
Telephone: +30-216-600-2400                                                              
Email: amichalopoulos@pshipping.com
Website: www.pshipping.com

Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net

FAQ

What did Performance Shipping (PSHG) announce on January 13, 2026 about bonds?

PSHG announced a USD 50 million tap of its senior secured bond due July 17, 2029, at a 9.875% fixed coupon.

How much will be outstanding under PSHG's bonds after the tap issue closes?

Following the tap, total outstanding under the Bonds will be USD 150 million.

When is the PSHG tap issue expected to close and what conditions apply?

The tap issue is expected to close on January 26, 2026, subject to customary closing conditions.

At what price was Performance Shipping's USD 50 million tap issue placed?

The tap issue was priced at 103.00% of par, reflecting a premium to par value.

Who can buy the bonds offered by Performance Shipping (PSHG)?

Bonds are offered in the U.S. only to qualified institutional buyers under Rule 144A and outside the U.S. only to non-U.S. persons under Regulation S.

What will PSHG use the net proceeds from the USD 50 million tap issue for?

Net proceeds are to be used for general corporate purposes in accordance with the bond terms.