Flex LNG Ltd. announced on June 2, 2025, the successful signing and completion of a $175 million Japanese Operating Lease with Call Option (JOLCO) lease financing for its vessel, Flex Courageous. This refinancing follows the earlier announcement of up to 10 years of additional backlog for the vessel.
The transaction generated net proceeds of approximately $42 million for the company. It also extends the debt maturity for Flex Courageous to 2035 and is expected to reduce the cost of debt by approximately 1.5% per annum.
This JOLCO lease is the first of three planned vessel refinancings under Flex LNG's Balance Sheet Optimization Program 3.0. The company aims to complete the refinancings of Flex Resolute and Flex Constellation in the second half of 2025, with combined efforts expected to release $120 million in net proceeds.
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