Flex LNG has completed the sale and leaseback of two LNGCs.
The deal involved Hyundai Glovis paying $300 mill and providing a seller’s credit of $120 mill for 2018-built LNGCs ‘Flex Endeavour’ and ‘Flex Enterprise.’
Hyundai Glovis will timecharter the vessels back to Flex LNG for 10 years. Flex LNG also has options to acquire the vessels during the charters, and the right to acquire the vessels at the end of the charter for a total of $150 mill, net of the $120 mill seller’s credit.
In addition, Flex LNG has closed and refinanced a loan connected to the two vessels and another LNGC ‘Flex Ranger’. This vessel was refinanced with a new $100 mill bank loan divided into a $50 mill term loan and a $50 mill revolving facility. The tenor is five years and the age adjusted repayment profile is 19 years.
“We are very satisfied with the successful closing of the Glovis SCB according to plan, and highly appreciate the close and good working relationship with Hyundai Glovis throughout this process.
“In connection with the Glovis SCB, we also decided to improve our capital structure by refinancing ‘Flex Ranger’ at better terms and conditions. The $50 mill revolving facility under the new loan will also enable us to optimise the excess cash resulting from the Glovis SCB, which released in excess of $100 mill to us.
“The two transactions improve our financial flexibility to return earnings to our shareholders when market conditions improve,” said Øystein Kalleklev, Flex LNG Management, CEO.