Loan & DebtMay 22, 2026, 05:32 PM
Koil Energy Secures New $5M Asset-Based Credit Facility
AI Summary
Koil Energy Solutions, Inc. entered into a Loan and Security Agreement with nFusion Capital Finance, LLC, establishing a new $5.0 million asset-based revolving credit facility. This facility, with an initial 12-month term and automatic renewals, will support working capital and accelerate the expansion of the company's rental equipment fleet. It replaces a prior receivables factoring arrangement, which has been fully repaid, resulting in Koil Energy having no outstanding financial debt other than lease obligations.
Key Highlights
- Secured a new $5.0 million asset-based revolving credit facility with nFusion Capital Finance, LLC.
- Availability based on an advance rate of 85% of eligible accounts.
- Loans bear interest at prime rate (floor 6.75%) plus a 4.75% margin.
- Initial maturity of 12 months, automatically renews for successive one-year terms.
- Obligations secured by a first-priority security interest in substantially all personal property assets.
- Paid a loan fee of 1.0% of the $5.0 million maximum revolver amount.
- Agreed to pay a monthly collateral monitoring fee of 0.25% of the average gross balance of eligible accounts.
- Facility replaces a prior receivables factoring arrangement, which has been repaid in full and terminated.
- Company currently has no outstanding financial debt other than lease obligations.
Price Impact
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