Koil Energy lands $5M asset-based credit line from nFusion Capital
What's the deal? Koil Energy SolutionsDealroom has a profile for this one. Try Dealroom → (OTCQB: KLNG), a Houston-based deepwater energy services company, has closed a $5 million asset-based revolving credit facility with nFusion Capital FinanceDealroom has a profile for this one. Try Dealroom →, an Austin-based private working capital lender. The facility replaces a prior receivables factoring arrangement with a commercial bank, which has been repaid in full and terminated.
The line of credit, drawable as needed, will support working capital and accelerate Koil's strategy to expand its fleet of rental equipment. As a result of the new facility and the factoring payoff, the company says it currently has no outstanding financial debt other than lease obligations.
Why now? Koil is betting on its high-margin rental equipment business as a long-term growth driver. "This new facility with nFusion provides flexible capital to support the continued expansion of our high-margin rental equipment offering," said Kurt Keller, the company's chief financial officer.
Swapping a factoring arrangement for a revolving credit line also signals the company's maturing financial position — factoring typically carries higher costs and less flexibility.
What could go wrong? Koil operates in deepwater energy services, a sector sensitive to oil-price swings, geopolitical risk, and project delays. A $5M facility is modest, and the company trades on the OTCQB market, which means limited liquidity for investors. If offshore activity slows, the rental fleet Koil is building could sit idle.
The signal: Koil's shift from receivables factoring to a revolving credit facility mirrors a broader pattern among micro-cap energy services firms seeking to professionalise their capital structures without tapping public equity markets. For a company trading on the OTCQB with no outstanding financial debt beyond leases, the move buys flexibility to scale its rental fleet — but in deepwater services, where contract cycles are long and capex demands are lumpy, a $5 million facility leaves a narrow runway if offshore spending softens.
Read more: stocktitan.net
