Flex LNG Secures $175 Million Financing for Flex Courageous Vessel
Flex LNG Ltd. has recently announced a significant advancement in its financial strategy with the successful completion of a lease financing agreement worth $175 million for its LNG carrier, the Flex Courageous. This refinancing initiative not only secures essential capital for the company but also extends the maturity of the debt associated with the vessel until 2035. Notably, this financing arrangement is estimated to reduce the cost of debt by approximately 1.5% per annum.
The newly secured funds will generate net proceeds of around $42 million, significantly bolstering Flex LNG’s liquidity and financial flexibility. This recent move comes on the heels of an announcement regarding an additional backlog of contracts extending up to ten years for the Flex Courageous. The financing is part of the company’s Balance Sheet Optimization Program 3.0, aimed at improving its financial structure following the establishment of a robust contract backlog across three vessels that totals nearly 37 years combined.
The company plans to prioritise the refinancing of two more vessels, the Flex Resolute and Flex Constellation, with similar initiatives expected to unfold in the latter half of 2025. These collective refinancing efforts are projected to release about $120 million in net proceeds, further extending the maturities of the debts and enabling a more manageable cost structure.
Knut Traaholt, the CFO of Flex LNG Management AS, expressed a positive outlook following the successful refinancing. He heralded the completion of this first refinancing move for 2025, acknowledging the trust and support from banking partners and lease providers, and emphasized the company's commitment to additional refinancing efforts in the near future. This proactive financial management reflects Flex LNG's strategy to strengthen its financial platform to navigate the competitive LNG market.
As of the end of the first quarter of 2025, Flex LNG maintained a solid cash balance of $410 million. The company aims to use the proceeds of the recent transaction to support its liquidity and maintain attractive financial terms, which is critical amid evolving market conditions.
Flex LNG specializes in the transportation of liquefied natural gas (LNG) and has a fleet comprising thirteen state-of-the-art LNG carriers, all equipped with the latest environmental technologies and propulsion systems. This commitment to modern capabilities allows Flex LNG not only to enhance fuel efficiency but also to significantly minimize its carbon footprint compared to older vessels in the market. Listed on both the New York Stock Exchange and Oslo Stock Exchange as FLNG, Flex LNG continues to position itself strategically within the LNG transportation sector. For more information, potential investors and interested parties can visit their official website at www.flexlng.com.
In conclusion, the successful leasing financing for the Flex Courageous is a pivotal step for Flex LNG as it continues to solidify its presence in the LNG market while ensuring financial stability for future endeavors. With the planned refinancings on the horizon, Flex LNG looks to enhance its growth trajectory in a market that is poised for increased demand for cleaner energy solutions.
The newly secured funds will generate net proceeds of around $42 million, significantly bolstering Flex LNG’s liquidity and financial flexibility. This recent move comes on the heels of an announcement regarding an additional backlog of contracts extending up to ten years for the Flex Courageous. The financing is part of the company’s Balance Sheet Optimization Program 3.0, aimed at improving its financial structure following the establishment of a robust contract backlog across three vessels that totals nearly 37 years combined.
The company plans to prioritise the refinancing of two more vessels, the Flex Resolute and Flex Constellation, with similar initiatives expected to unfold in the latter half of 2025. These collective refinancing efforts are projected to release about $120 million in net proceeds, further extending the maturities of the debts and enabling a more manageable cost structure.
Knut Traaholt, the CFO of Flex LNG Management AS, expressed a positive outlook following the successful refinancing. He heralded the completion of this first refinancing move for 2025, acknowledging the trust and support from banking partners and lease providers, and emphasized the company's commitment to additional refinancing efforts in the near future. This proactive financial management reflects Flex LNG's strategy to strengthen its financial platform to navigate the competitive LNG market.
As of the end of the first quarter of 2025, Flex LNG maintained a solid cash balance of $410 million. The company aims to use the proceeds of the recent transaction to support its liquidity and maintain attractive financial terms, which is critical amid evolving market conditions.
Flex LNG specializes in the transportation of liquefied natural gas (LNG) and has a fleet comprising thirteen state-of-the-art LNG carriers, all equipped with the latest environmental technologies and propulsion systems. This commitment to modern capabilities allows Flex LNG not only to enhance fuel efficiency but also to significantly minimize its carbon footprint compared to older vessels in the market. Listed on both the New York Stock Exchange and Oslo Stock Exchange as FLNG, Flex LNG continues to position itself strategically within the LNG transportation sector. For more information, potential investors and interested parties can visit their official website at www.flexlng.com.
In conclusion, the successful leasing financing for the Flex Courageous is a pivotal step for Flex LNG as it continues to solidify its presence in the LNG market while ensuring financial stability for future endeavors. With the planned refinancings on the horizon, Flex LNG looks to enhance its growth trajectory in a market that is poised for increased demand for cleaner energy solutions.
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