Flex said on Monday that the refinancing generated net proceeds of approximately $42 million, “extends debt maturity to 2035 and will significantly reduce the cost of debt by ~1.5 percent p.a.”
The refinancing of Flex Courageous follows the announcement of up to ten years of additional backlog for the vessel, it said.
Last year, Flex announced that the charterer of the 2019-built 173,400-cbm LNG carrier had exercised its first extension option.
UK-based energy giant BP is the charterer of this vessel
Flex said this Jolco (Japanese operating lease with call option) marks the first of three planned vessel refinancings under the balance sheet optimization program 3.0, introduced in the Q1 2025 presentation after securing up to 37 years of combined contract backlog across three vessels.
The company said it “remains on track” to complete the refinancing of Flex Resolute and Flex Constellation in the second half of 2025.
The combined refinancing efforts are expected to release $120 million in net proceeds, while also extending debt maturities and reducing the overall cost of debt.
At the end of Q1 2025, Flex LNG held a cash balance of $410 million.
The proceeds from this transaction further support the company’s “strong liquidity position, financial flexibility at highly attractive terms and supported by the substantial charter backlog.”
