Flex LNG refinances first of three LNG carriers

Flex LNG has initiated a lease refinancing programme for a trio of its LNG carriers. In the first transaction, the company used US$175M in JOLCO lease financing for the vessel Flex Courageous. The refinancing generated net proceeds of approximately US$42M, extended debt maturity to 2035 and reduced the cost of debt by approximately 1.5% per annum, according to the John Fredriksen-backed company.

Flex LNG announced refinancing of three LNG carriers in its Q1 2025 earnings report after securing up to 37 years of combined contract backlog across the three vessels. The refinancing of Flex Courageous follows the announcement of up to 10 years of additional backlog for the vessel through contracts with BP. 

"The JOLCO lease marks the first of three planned vessel refinancings under the Balance Sheet Optimisation Program 3.0, introduced in the Q1-2025 presentation after securing up to 37 years of combined contract backlog across the three vessels. The company 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 US$120M in net proceeds, while also extending debt maturities and reducing the overall cost of debt," Flex LNG said.

At the end of Q1-2025, Flex LNG held a cash balance of US$410M. The company said the proceeds from the leasing transaction would further support a strong liquidity position and financial flexibility.

"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,” Flex LNG Management CFO Knut Traaholt said.