HAMILTON, Bermuda, June 2, 2025 – Flex LNG Ltd. (NYSE: FLNG) (OSE: FLNG) has announced the successful completion of a $175 million JOLCO lease financing for the vessel Flex Courageous, marking a strategic move to bolster its financial standing.
The refinancing, yielding approximately $42 million in net proceeds, cleverly extends the debt maturity to 2035 and promises a significant reduction in the cost of debt by roughly 1.5% annually. This initiative follows the announcement of a substantial extension to the Flex Courageous’s backlog, promising up to ten more years of revenue generation.
This JOLCO lease represents the first step in Flex LNG’s “Balance Sheet Optimization Program 3.0,” initially outlined in its Q1-2025 presentation. The program aims to strategically refinance a total of three vessels, supported by an impressive combined contract backlog of up to 37 years across the trio.
The company is on track to complete the refinancing of both the Flex Resolute and the Flex Constellation in the second half of 2025. These combined efforts are projected to release a further $120 million in net proceeds, alongside additional debt maturity extensions and, importantly, reduced borrowing costs.
Flex LNG’s liquidity remains robust, with a cash balance of $410 million reported at the end of Q1-2025. This newly secured financing only adds to the company’s financial flexibility, secured at favorable terms and bolstered by a strong charter backlog – a key indicator of operational stability and investor confidence.
Knut Traaholt, CFO of Flex LNG Management AS, commented on the positive developments, stating, “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.”
Flex LNG is a shipping company concentrating on the expanding Liquefied Natural Gas (LNG) market. The company’s fleet consists of thirteen state-of-the-art LNG carriers, all equipped with the modern, fuel-efficient two-stroke propulsion systems (MEGI and X-DF). The company’s efficiency focused approach enhances its overall financial performance.
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