Flex LNG has signed and completed the $175 mill JOLCO lease financing for the LNGC ‘Flex Courageous’.
The refinancing generated net proceeds of around $42 mill, extended debt maturity to 2035 and will significantly reduce the cost of debt by about 1.5% per annum, the Oslo-based LNGC owner claimed.
The ‘Flex Courageous’ refinancing follows the announcement of up to 10 years of additional charter backlog for the vessel.
This JOLCO lease marks the first of three planned vessel refinancings under the Balance Sheet Optimisation Programme 3.0, introduced in the first quarter 2025 results presentation after securing up to 37 years of combined contract backlog across three vessels.
The company said it remained on track to complete the refinancing of ‘Flex Resolute’ and ‘Flex Constellation’ in the second half of this year.
These combined refinancing deals are expected to release $120 mill in net proceeds, while also extending debt maturities and reducing the overall debt cost.
At the end of 1Q25, Flex LNG held a cash balance of $410 mill.
The company added that the proceeds from this transaction further support its strong liquidity position, financial flexibility at highly attractive terms and supported by the substantial charter backlog.
