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Flex LNG LTD (OSE:FLNG) (“Flex LNG” or the “Company”) is pleased to announce
that it has entered into a sale-charterback transaction with Hyundai Glovis Co.
Ltd. (“Hyundai Glovis”) for the vessels Flex Endeavour and Flex Enterprise.
Under the agreement, Flex LNG will sell the vessels for a gross consideration of
$420m, with a net consideration of $300m adjusted for a non-amortizing and
non-interest bearing seller’s credit of $120m in total.
Flex Endeavour and Flex Enterprise will be charted back on a time-charter basis
to subsidiaries of Flex LNG for a period of ten years. The Company will have
options to acquire the vessels during the term of the time-charters. At the end
of the ten-year charter period, Flex LNG will have the right to acquire the
vessels and Hyundai Glovis will have the right to sell the vessels back to Flex
LNG for a total consideration of $150m, net of the $120m seller’s credit. The
existing ship management agreements will be novated to Hyundai Glovis, securing
continuation of the ship management services.
The transaction with Hyundai Glovis remains subject to customary closing
conditions and is expected to close in the third quarter of 2019. In connection
with the transaction, the existing mortgage loans for the two vessels totaling
approximately $194m will be prepaid and the transaction will thus significantly
increase our liquidity.
Furthermore, Flex LNG is also pleased to inform that the $250m bank facility
agreement for Flex Constellation and Flex Courageous, announced on 28 February
2019, has now been signed. The funds will be available for drawdown in
connection with the scheduled deliveries in June and August, respectively.
Øystein M. Kalleklev, Chief Executive Officer, 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.
For further information, please contact:
Øystein M. Kalleklev,
Chief Executive Officer
Flex LNG Management AS
Telephone: +47 23 11 40 00
E-Mail: IR@flexlng.com
About FLEX LNG LTD
Flex LNG is shipping company focuses on the growing market for transportation of
liquefied natural gas (LNG). The fleet consists of thirteen modern LNG ships,
four existing and nine under construction for delivery throughout 2019-2021. All
LNG carriers are equipped with slow speed, two-stroke engines MEGI or X-DF
propulsion which will provide Charterers with state of the art tonnage offering
significant advantages in form of reduced fuel consumption and lowered boil off
rates.
Forward Looking Statements
This press release contains certain forward-looking statements relating to the
business, financial performance and results of the Company and/or the industry
in which it operates, sometimes identified by the words “believes”, “expects”,
“intends”, “plans”, “estimates” and similar expressions. The forward-looking
statements contained in this release, including assumptions, opinions and views
of the Company or cited from third-party sources, are solely opinions and
forecasts which are subject to risks, uncertainties and other factors that may
cause actual events to differ materially from any anticipated development. The
Company does not provide any assurance that that the assumptions underlying such
forward-looking statements are free from errors, nor does the Company accepts
any responsibility for the future accuracy of the opinions expressed in the
presentation or the actual occurrence of the forecasted developments. No
obligations are assumed to update any forward-looking statements or to conform
to these forward-looking statements to actual results.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act or the continuing obligations of
Oslo Børs.
http://www.netfonds.no/quotes/release.php?id=20190429.OBI.20190429S49
