HOUSTON, TEXAS (Ofelia Paredes, Energy Analytics Institute, 2.Jun.2025, Words: 275) — Flex LNG Ltd. completed the $175mn JOLCO lease financing for the Flex Courageous vessel. The refinancing generated $42mn in net proceeds, extends debt maturity to 2035 and will significantly reduce the cost of debt by ~1.5% per annum.
“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 AS CFO Knut Traaholt said on 2 Jun. 2025 in an official company statement.
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The refinancing follows the announcement of up to 10 years of additional backlog for the vessel. And, the lease marks the first of 3 planned vessel refinancings under Flex LNG’s balance sheet optimization program 3.0 revealed in the first-quarter 2025 (1Q:25). This, after securing up to 37 years of combined contract backlog across the 3 vessels.
Flex LNG had a cash balance of $410mn at the end of the 1Q:25. As such, proceeds from this transaction further support Flex LNG’s strong liquidity position, financial flexibility at highly attractive terms and supported by the substantial charter backlog, the company said in the statement.
Flex LNG remains on track to complete the refinancing of Flex Resolute and Flex Constellation in the second-half 2025 (2H:25). The combined refinancing efforts are expected to release $120mn in net proceeds, while also extending debt maturities and reducing the overall cost of debt.
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By Ofelia Paredes reporting from Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
