Flex LNG Secures $175 Million Lease Financing for Flex Courageous LNG Carrier

Flex LNG, backed by John Fredriksen, has secured $175 million in lease financing for its LNG carrier, the Flex Courageous, which has a capacity of 173 400 cubic meters.

The JOLCO refinancing deal is expected to generate approximately $42 million in net proceeds and extend the debt maturity to 2035. Additionally, it will significantly lower the cost of debt by about 1,5 % per year.

This refinancing follows the announcement of an agreement with BP for up to 10 years of additional contract backlog made in November of last year.

This lease marks the first of three planned refinancing deals for vessels. The other two will involve the Flex Resolute and Flex Constellation. The decision to refinance all three vessels was made after securing a combined contract backlog of up to 37 years.

The remaining two refinancing deals are anticipated to be completed in the second half of 2025, releasing $120 million in net proceeds while also extending debt maturities and reducing the overall cost of debt. As of the end of the first quarter of this year, Flex LNG reported a cash balance of $410 million.