- Flex LNG completed a lease refinancing for the vessel Flex Courageous extending debt maturity to 2035, and reducing the cost of debt by about 1.5% per year.
- This refinancing is the first of three planned under the company’s Balance Sheet Optimization Program 3.0.
- The transaction improves Flex LNG’s liquidity and financial flexibility, supported by a strong charter backlog as of Q1 2025.
Flex LNG Ltd has successfully completed a $175 million JOLCO lease financing for its vessel Flex Courageous. This refinancing deal generated net proceeds of around $42 million, extended the debt maturity to 2035, and is expected to reduce the company’s cost of debt by approximately 1.5% annually.
Company Update on Refinancing and Liquidity
This refinancing follows Flex LNG’s earlier announcement of up to 10 additional years of backlog for Flex Courageous. It is the first of three planned vessel refinancings under the company’s Balance Sheet Optimization Program 3.0, which was introduced in the Q1 2025 presentation. The program supports the company’s combined contract backlog of up to 37 years across the three vessels.
Flex LNG remains on schedule to complete the refinancing of its vessels Flex Resolute and Flex Constellation in the latter half of 2025. These combined refinancing activities are expected to generate $120 million in net proceeds, while also extending debt maturities and lowering overall debt costs. As of the end of Q1 2025, the company held $410 million in cash. The recent transaction strengthens its liquidity position and financial flexibility, backed by a substantial charter backlog.
Knut Traaholt, CFO of Flex LNG Management AS, expressed satisfaction with the completion of the first refinancing deal of 2025 on favorable terms. He acknowledged the ongoing support from the company’s banking partners and lessors, and indicated that the company is now focused on completing the refinancing of Flex Resolute and Flex Constellation, as part of its efforts to enhance its financial foundation.
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: FlexLNG
