Flex LNG Wraps Up Hyundai Glovis Sale-Charterback Deal
LNG carrier owner Flex LNG completed the sale-and-charterback transaction with Hyundai Glovis entered into in April 2019.
Under the transaction, the the 2018-built vessels Flex Endeavour and Flex Enterprise have been sold for a gross consideration of USD 420 million, with a net consideration of USD 300 million to the company adjusted for a non-amortizing and non-interest bearing seller’s credit of USD 120 million in total.
Both units would be chartered back on a time-charter basis to subsidiaries of Flex LNG for a period of ten years, and the company will have options to acquire the vessels during the term of the time-charters.
Flex Endeavour and Flex Enterprise were, together with Flex Ranger, financed under a USD 315 million term loan facility due 2023.
Additionally, Flex LNG said it has closed and refinanced the remaining tranche for Flex Ranger, and the total outstanding of USD 294 million under the USD 315 million facility has been prepaid in full.
The Flex Ranger has been refinanced with a new USD 100 million bank loan divided into a USD 50 million term loan and a USD 50 million revolving facility.
The company added that the new loan has an improved margin of 2.25% p.a., compared to 2.85% p.a. under the USD 315 million facility. The tenor is 5 years and the age adjusted repayment profile is 19 years.