John Fredriksen-controlled Flex LNG has finalised $430m of new financing.
The funding round, announced in its second quarter report, has been completed according to plan with net proceeds of about $97m.
Finance chief Knut Traaholt said: “We are pleased to have completed another round of refinancings at very attractive terms.”
On 24 September, the new $270m bank facility financing for its 174,000-cbm Flex Aurora (built 2020) and Flex Ranger (built 2018) was completed. The new facility matures in 2030.
“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,” Traaholt said.
The previous $375m bank facility was repaid in full. Consequently, 173,400-cbm Flex Endeavour (built 2018) was unencumbered at the end of the third quarter.
On 3 October, the Oslo-listed company closed the new $160m Japanese JOLCO lease for the Flex Endeavour.
“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,” the CFO added.
Flex LNG had a cash balance of $370m at the end of the second quarter. With the completion of the refinancings, the company will add to “an already substantial cash balance”.
“Our financial strength together with the substantial charter backlog provide us with significant commercial and financial flexibility to further develop the company,” Traaholt said.
Flex LNG has a fleet of 13 LNG carriers.
