John Fredriksen-backed Flex LNG has completed its $2bn fleet financing programme as it eyes further growth.
The Oslo-listed owner has refinanced all of its vessels over the past 16 months, with the last piece of the jigsaw being a $290m loan for the 173,000-cbm Flex Freedom and 174,000-cbm Flex Vigilant (both built 2021).
Since the fourth-quarter results in February, six other vessels have been refinanced.
These deals will provide Flex LNG with $204m in net cash proceeds in the first quarter.
At the end of 2022, the owner had a cash balance of $332m.
Knut Traaholt, chief financial officer of Flex LNG Management, said: “We are pleased to have completed our approximately $2bn refinancing process according to plan and on schedule despite the recent turmoil in the financial markets.
“We are grateful for the trust and support from our banks and lease providers, which have resulted in a very attractive funding platform for Flex LNG.”
Traaholt said the refinancing not only significantly boosts the cash position by a total of $387m, but also reduces interest margins and stretches the repayment and maturity profiles out to 2028 at the earliest.
“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 been taking advantage of the firm market and its large charter backlog to improve terms and free up money.
Last month, the owner started marketing its next two LNG carriers that are set to fall open four years from now in the first half of 2027 at what it sees will be a competitive time for them.
Speaking on a results webcast, Flex chief executive Oystein Kalleklev named the ships as the 174,000-cbm Flex Ranger (built 2018) and 173,400-cbm Flex Constellation (built 2019), which are set to be redelivered in the first and second quarters of 2027, respectively.
