Koil Energy Secures New $5 Million Asset-Based Credit Facility

Rhea-AI Summary

Koil Energy (OTCQB: KLNG) closed a new $5 million asset-based revolving credit facility with nFusion Capital Finance. The line of credit, drawable as needed, will support working capital, expand Koil’s rental equipment fleet, and replaces a repaid receivables factoring arrangement, leaving no financial debt other than lease obligations.

AI-generated analysis. Not financial advice.

Positive

• New $5 million asset-based revolving credit facility secured with nFusion Capital
• Facility intended to support working capital and rental equipment fleet expansion
• Replaces prior receivables factoring arrangement, which has been repaid and terminated
• Company reports no outstanding financial debt other than lease obligations
• Management highlights added liquidity and financial flexibility to scale the business

Negative

• None.

HOUSTON, May 22, 2026 (GLOBE NEWSWIRE) -- KOIL Energy Solutions, Inc. (OTCQB: KLNG), a specialist in deepwater energy production and distribution equipment and services, today announced the closing of a new asset-based lending facility.

KOIL entered a $5 million asset-based revolving line of credit with nFusion Capital Finance, LLC, (“nFusion”), an Austin, Texas-based private working capital finance company. The facility, which will be drawn on an as-needed basis, will support working capital and accelerate KOIL’s strategy to expand its fleet of rental equipment, and replace a prior receivables factoring arrangement with a commercial bank, which has been repaid in full and terminated.

As a result of this new facility and the payoff of the prior factoring arrangement, KOIL currently has no outstanding financial debt other than lease obligations.

“This new facility with nFusion provides flexible capital to support the continued expansion of our high-margin rental equipment offering, which we believe will be an important driver of KOIL’s long-term growth,” said Kurt Keller, Chief Financial Officer, KOIL. “Importantly, the facility also provides us with additional liquidity and financial flexibility as we continue to scale the business.”

About KOIL (www.koilenergy.com)

KOIL Energy is a leading energy services company offering subsea equipment and support services to the world's energy and offshore industries. We provide innovative solutions to complex customer challenges presented between the production facility and the energy source. Our core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, KOIL Energy's experienced team can support subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world.

Forward-Looking Statements

Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company's filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.

Investor Relations Contact:
ir@koilenergy.com
281-862-2201

FAQ

What is Koil Energy's new $5 million credit facility with nFusion Capital (OTCQB: KLNG)?

Koil Energy secured a $5 million asset-based revolving line of credit with nFusion Capital Finance. According to Koil Energy, this facility is drawable as needed and is designed to support working capital, expand its rental equipment fleet, and replace a prior receivables factoring arrangement.

How will Koil Energy (OTCQB: KLNG) use its new $5 million asset-based credit line?

Koil Energy plans to use the new facility to support working capital and expand its rental equipment fleet. According to Koil Energy, the credit line is structured as an as-needed revolver, providing flexibility while backing the company’s strategy to grow its high-margin rental offerings.

What does the new nFusion Capital facility mean for Koil Energy's debt levels (KLNG)?

Koil Energy reports that, after closing the new facility and repaying its prior factoring arrangement, it has no financial debt other than lease obligations. According to Koil Energy, the revolver adds liquidity and flexibility without immediately increasing borrowings, since it will be drawn on an as-needed basis.

Did Koil Energy terminate its previous receivables factoring arrangement after securing the $5 million facility?

Yes, Koil Energy states that its prior receivables factoring arrangement with a commercial bank has been repaid in full and terminated. According to Koil Energy, the new nFusion Capital facility replaces that structure while providing ongoing working capital support through a revolving credit line.

How does the nFusion Capital credit facility support Koil Energy's rental equipment growth strategy (KLNG)?

The facility is intended to fund expansion of Koil Energy’s rental equipment fleet and support its high-margin rental offering. According to Koil Energy, management views this rental portfolio as an important driver of the company’s long-term growth and overall business scaling efforts.

What liquidity and financial flexibility benefits does Koil Energy expect from its new $5 million revolver?

Koil Energy indicates the facility provides additional liquidity and financial flexibility while the company scales its operations. According to Koil Energy, the as-needed nature of the revolver helps support working capital and rental fleet expansion without requiring immediate full utilization of the available credit.