Hamilton-based Flex LNG shipowner has completed its balance sheet optimization programme with the signing of a new $290m loan deal for the refinancing of “Flex Freedom” and “Flex Vigilant.”
The New York-listed and Oslo listed company has finalised the process with the new loan agreement for the two vessels.
The owner has refinanced all its vessels over the last 16 months boosting the company´s cash position in total by $387m.
The company claims that it completed the USD 2 billion refinancing process according to plan and on schedule, despite the recent turmoil in the financial markets.
It also completed the refinancing of Flex Aurora, Flex Artemis and Flex Amber earlier this year, while the lease for Flex Rainbow and the refinancing of Flex Freedom and Flex Vigilant were closed in March.
The financings will provide Flex LNG with $204m in net cash proceeds in the first quarter. At year-end 2022, Flex LNG had a cash balance of $332m and these re-financings, will further add to an already substantial cash balance.
Knut Traaholt, CFO of Flex LNG Management AS, said “We are pleased to have completed our approx USD 2 billion refinancing process according to plan and on schedule despite the recent turmoil in the financial markets. We are grateful for the trust and support from our banks and lease providers which have resulted in a very attractive funding platform for Flex LNG. We have during the last 16 months refinanced all ships in the Flex LNG fleet, not only significantly boosting our cash position in total by $387m, but also reduced interest margin significantly and stretched the repayment and maturity profiles with the first loan not due before 2028. Our financial strength together with the substantial charter backlog provide us with significant commercial and financial flexibility to further develop the company.”