Flex LNG hammers out $175m refinancing deal for LNG carrier
Flex LNG Secures $175M Financing for LNG Carrier
Flex LNG, backed by shipping magnate John Fredriksen, has successfully arranged a $175 million lease financing deal for its LNG carrier, the Flex Courageous. This strategic refinancing will not only generate approximately $42 million in net proceeds but also extend the vessel’s debt maturity to 2035 while reducing the annual cost of debt by about 1.5%. The move comes on the heels of a significant contract backlog secured with BP, ensuring stability for the company moving forward.
Refinancing Strategy and Future Plans
The recent refinancing of the Flex Courageous is part of a broader strategy by Flex LNG to optimize its financial position. This deal marks the first of three planned refinancing agreements for the company’s vessels. The other two vessels set for refinancing are the Flex Resolute and Flex Constellation. The decision to pursue these refinancing options was influenced by the company securing up to 37 years of combined contract backlog, which provides a solid foundation for future revenue.
Flex LNG anticipates that the remaining two refinancing deals will be finalized in the latter half of 2025. Collectively, these transactions are expected to release an additional $120 million in net proceeds, further extending debt maturities and reducing overall debt costs. As of the end of the first quarter of this year, Flex LNG reported a robust cash balance of $410 million, positioning the company well for its upcoming financial maneuvers and operational commitments.
