Bermuda-based Flex LNG completed a $175m JOLCO lease financing for its 2019-build vessel Flex Courageous. The refinancing deal generated net proceeds of around $42m, according to the company’s statement.
The deal also extends debt maturity to 2035 and will significantly reduce the cost of debt by 1.5% per annum, Flex LNG said.
The refinancing of Flex Courageous follows the announcement of up to 10 years of additional backlog for the vessel.
The lease marks the first of three planned vessel refinancings under the balance sheet optimization program 3.0, introduced in the first quarter of 2025 presentation after securing up to 37 years of combined contract backlog across the three vessels.
The company highlighted that 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 $120m in net proceeds, while also extending debt maturities and reducing the overall cost of debt.
At the end of the first quarter of this year, Flex LNG held a cash balance of $410m.
Knut Traaholt, CFO of Flex LNG Management AS, said: “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.”
