11:12 AM EDT, 10/24/2024 (MT Newswires) -- Performance Shipping ( PSHG ) said Thursday it has entered into a sale and leaseback agreement with an unaffiliated third party through a subsidiary for its second newbuild LR2 Aframax tanker vessel.

The $45.4 million financing involves selling the vessel and chartering it back for 10 years with monthly installments of $211,500 plus variable rate at secured overnight financing rate, or SOFR plus 2.1% per annum.

It also includes a balloon payment of $20 million which will be due along with the final installment, the company said.

The vessel, which set to be delivered in Q1 2026, has been pre-chartered to Clearlake Shipping for five years at a rate of $31,000 per day, with options for extension.

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