10:27 AM EDT, 07/16/2024 (MT Newswires) -- Performance Shipping ( PSHG ) said Tuesday it has entered a sale and leaseback agreement with a Japanese third party through a subsidiary for a newbuild LR2 Aframax tanker vessel.

The $44.3 million financing involves selling the vessel and chartering it back for eight years at $7,132 per day, with a balloon payment of $23.7 million which will be due along with the final installment, the company said.

Performance Shipping ( PSHG ) said the delivery is expected in Q4 2025.

The tanker will be chartered to Clearlake Shipping for five years at $31,000 per day, with options to extend, Performance Shipping ( PSHG ) added.

The company's shares rose nearly 2% in recent trading.

Price: 2.11, Change: +0.04, Percent Change: +1.93