Flex LNG Ltd. announced the completion of a $175 million JOLCO lease financing agreement for its LNG carrier, Flex Courageous.
The refinancing generated net proceeds of approximately $42 million, extended the debt maturity to 2035, and is expected to reduce the cost of debt by approximately 1.5% per annum.
This refinancing follows the recent extension of Flex Courageous's contract backlog by up to ten years. It represents the first of three planned vessel refinancing transactions under the company’s Balance Sheet Optimization Program 3.0, which was introduced in the Q1 2025 presentation after securing a combined contract backlog of up to 37 years across three vessels.
Flex LNG expects to complete similar refinancing agreements for Flex Resolute and Flex Constellation in the second half of 2025.
The combined refinancing efforts are projected to generate $120 million in net proceeds, extend debt maturities, and lower overall debt costs.
At the end of Q1 2025, Flex LNG reported a cash balance of $410 million.
The recent transaction further strengthens the company’s liquidity and financial flexibility on attractive terms, supported by its substantial charter backlog.
Knut Traaholt, Chief Financial Officer of Flex LNG Management AS, stated: “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.”
Flex LNG is a shipping company specializing in liquefied natural gas (LNG) transportation. The company owns and operates a fleet of thirteen LNG carriers equipped with state-of-the-art propulsion systems such as MEGI and X-DF engines, which improve fuel efficiency and reduce carbon emissions.