Flex LNG seals sale and charterback with Hyundai Glovis for LNG carrier pair

John Fredirksen’s Flex LNG has sold 2018-built LNG carrier pair Flex Endeavour and Flex Enterprise to Hyundai Glovis for $420m.

Hyundai Glovis is paying $300m and providing a seller’s credit of $120m. It will time charter the vessel back to Flex LNG for a period of ten years. Flex LNG has options to acquire the vessels during the charters, and the right to acquire the vessels at the end of the charter for a total of $150m, net of the $120m seller’s credit.

Flex LNG also finalised a $250m bank facility agreement for Flex Constellation and Flex Courageous, initially announced in February.

Øystein Kalleklev, CEO of Flex LNG, commented: “We are pleased to announce a partnership with Hyundai Glovis, a top-tier global logistics and distribution company. The transaction secures us long-term financing at attractive terms and will significantly boost our cash position by more than $100m. With the two financings we are very well capitalized to take delivery of our remaining newbuildings. Cash break-even levels of less than $50,000 on average for these two financings demonstrate our ability to raise competitive and long-term financing from a diverse set of funding sources.