Flex LNG - Finalize $175 million lease financing for Flex Courageous
- Generated $42 million in net proceeds from the Flex Courageous refinancing
- Debt maturity extended to 2035, providing long-term financial stability
- Cost of debt reduced by approximately 1.5% per year
- Strong liquidity position with $410 million cash balance at Q1-2025
- Secured up to 37 years of combined contract backlog across three vessels
- Expected additional $120 million in net proceeds from upcoming refinancings
- None.
Insights
Flex LNG's $175M refinancing cuts debt costs 1.5%, extends maturity to 2035, and generates $42M in proceeds, strengthening financial position.
The completion of the
The
The maturity extension to 2035 significantly reduces refinancing risk and aligns debt obligations with the vessel's newly secured charter backlog. This strategic sequencing - first securing long-term employment for the vessel, then refinancing against that contracted revenue stream - demonstrates management's disciplined approach to capital structure optimization.
As the first of three planned vessel refinancings under the Balance Sheet Optimization Program 3.0, this transaction sets a positive precedent for the upcoming Flex Resolute and Flex Constellation refinancings. With all three refinancings expected to generate
The successful financing amid the backdrop of 37 years of combined new contract backlog across three vessels reflects strong lender confidence in Flex LNG's business model and highlights the competitive advantage of its modern, efficient fleet in securing long-term customer commitments.
The refinancing of Flex Courageous follows the announcement of up to 10 years of additional backlog for the vessel. This JOLCO lease marks the first of three planned vessel refinancings under the Balance Sheet Optimization Program 3.0, introduced in the Q1-2025 presentation after securing up to 37 years of combined contract backlog across the three vessels.
The Company remains on track to complete the refinancing of Flex Resolute and Flex Constellation in the second half of 2025. The combined refinancing efforts are expected to release
At the end of Q1-2025, Flex LNG held a cash balance of
Knut Traaholt, CFO of Flex LNG Management AS, commented:
"We are pleased to have completed our first refinancing of 2025 at very attractive terms. We sincerely appreciate the continued trust and support from our banking partners and lease providers. With this transaction completed, we now turn our attention to the planned refinancings of Flex Resolute and Flex Constellation, continuing our efforts to further strengthen Flex LNG's financial platform."
For further information, please contact:
Mr. Knut Traaholt, Chief Financial Officer of Flex LNG Management AS
Telephone: +47 23 11 40 00
Email: ir@flexlng.com
About FLEX LNG
Flex LNG is a shipping company focused on the growing market for Liquefied Natural Gas (LNG). Our fleet consists of thirteen LNG carriers on the water and all of our vessels are state-of-the-art ships with the latest generation two-stroke propulsion (MEGI and X-DF). These modern ships offer significant improvements in fuel efficiency and thus also carbon footprint compared to the older steam and four-stroke propelled ships. Flex LNG is listed on the New York Stock Exchange as well as Oslo Stock Exchange under the ticker FLNG. For more information, go to: www.flexlng.com
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SOURCE Flex LNG
FAQ
What is the value of FLNG's new lease financing for Flex Courageous?
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What is the debt maturity extension for FLNG's Flex Courageous refinancing?
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