Flex LNG Secures $175 Million Lease Financing for Expansion
Flex LNG Secures $175 Million Lease Financing
Flex LNG Ltd. (NYSE: FLNG) is excited to announce the successful completion of its $175 million JOLCO lease financing for the vessel Flex Courageous. This strategic move not only strengthens the company's financial position but also extends the debt maturity to 2035, while offering substantial savings of approximately 1.5% per annum in debt costs.
Impact of the Financing on Flex Courageous
The refinancing of Flex Courageous aligns with the announcement of securing up to a decade of additional backlog, which promises to enhance profitability for the company. This first refinancing marks part of the broader Balance Sheet Optimization Program 3.0, allowing Flex LNG to navigate a strong and sustained financial framework.
Upcoming Refinancing Plans
Flex LNG is on track to refinance two more vessels, Flex Resolute and Flex Constellation, during the latter half of the year. The anticipated net proceeds from these combined refinancing efforts are estimated to reach around $120 million. These actions will not only extend debt maturities but will also drive down overall debt costs even further.
Financial Position and Future Plans
As of the end of the first quarter of 2025, Flex LNG maintained an impressive cash balance of $410 million. This transaction reinforces the company's robust liquidity position, giving it the financial flexibility needed to pursue future growth opportunities. Financial stability is essential for capitalizing on market conditions, and this refinancing significantly enhances that stability.
Comments from Leadership
Knut Traaholt, the Chief Financial Officer of Flex LNG Management AS, expressed satisfaction with the recent refinancing, stating, "We are glad to have concluded our first refinancing for 2025 under highly favorable conditions. The continued trust from our financial partners has been invaluable. Moving forward, we prioritize the upcoming refinancings for Flex Resolute and Flex Constellation to further build on our financial strength."
About FLEX LNG
Flex LNG is committed to enhancing its role in the growing Liquefied Natural Gas (LNG) sector. With a fleet of thirteen LNG carriers, the company operates state-of-the-art vessels that utilize the latest two-stroke propulsion technology. This positions Flex LNG favorably in terms of fuel efficiency and environmental sustainability compared to older vessel designs.
Frequently Asked Questions
What is Flex LNG's recent financing achievement?
Flex LNG successfully secured $175 million in JOLCO lease financing for the vessel Flex Courageous.
How will the refinancing impact Flex LNG?
The refinancing will significantly reduce the cost of debt by approximately 1.5% per annum and extend debt maturity to 2035.
What are the future plans for Flex LNG's fleet?
Flex LNG plans to refinance two additional vessels, Flex Resolute and Flex Constellation, in the latter part of 2025.
What is the current cash position of Flex LNG?
As of the end of the first quarter of 2025, Flex LNG holds a cash balance of $410 million.
What technology do Flex LNG's vessels use?
The fleet features modern ships equipped with advanced two-stroke propulsion systems which enhance fuel efficiency and reduce carbon footprints.
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