Flex LNG Bolsters Finances with Successful $430 Million Refinancing

Flex LNG, a leading shipping company focused on the growing market for Liquefied Natural Gas (LNG), has successfully completed a $430 million refinancing. This strategic move aims to strengthen the company's financial position and support its growth prospects.

The refinancing consists of two key components. Firstly, Flex LNG secured a $270 million bank facility financing for Flex Aurora and Flex Ranger, which was completed on September 24, 2024. This new financing enabled the company to repay the previous $375 million bank facility in full, resulting in the unencumbered status of Flex Endeavour at the end of Q3-2024. Secondly, Flex LNG successfully closed a new $160 million JOLCO lease for Flex Endeavour on October 3, 2024, at very attractive terms.

With the completion of these refinancings, Flex LNG will add to its already substantial cash balance, which stood at $370 million on June 30, 2024. This increased liquidity will provide the company with significant commercial and financial flexibility to further develop its business.

The new financing terms improve Flex LNG's liquidity and financial flexibility, enabling the company to pursue strategic investments and growth opportunities. The extended debt maturity reduces the company's future cash flow and capital expenditure obligations, allowing Flex LNG to focus on reinvestment and expansion.

Flex LNG's Chief Financial Officer, Knut Traaholt, expressed his satisfaction with the successful refinancing, stating, "We are pleased to have completed another round of refinancings at very attractive terms. We highly appreciate the efforts of all involved parties for another smooth closing, and we welcome a new international shipping bank to our banking group. We are grateful for the trust and strong support from our banks and lease providers which have resulted in a very attractive funding platform for Flex LNG. Our financial strength together with the substantial charter backlog provide us with significant commercial and financial flexibility to further develop the Company."

In conclusion, Flex LNG's successful $430 million refinancing demonstrates the company's commitment to strengthening its financial position and pursuing growth opportunities in the LNG market. With increased liquidity and improved financing terms, Flex LNG is well-positioned to capitalize on the growing demand for LNG and continue its expansion in the industry.