nFusion Capital provides $5m ABL facility to support KOIL Energy expansion

nFusion Capital has provided a $5 million asset-based lending (ABL) facility to KOIL Energy, strengthening the subsea engineering specialist’s liquidity position and supporting its international growth strategy.

The Houston-based company, which supplies equipment and services for deepwater energy production and distribution projects, will use the funding to expand its rental equipment fleet, support working capital requirements and replace its existing commercial bank factoring arrangement.

KOIL Energy provides subsea engineering, manufacturing, installation, commissioning and maintenance solutions for offshore energy production projects around the world. Its customer base includes major global energy companies, including Shell, and its services span distribution system installation support, engineering services, umbilical terminations and loose-tube steel flying leads.

The new facility marks a significant step in KOIL Energy’s growth plans as it seeks to capitalise on expanding international opportunities in the subsea energy market.

The transaction was referred to nFusion Capital by a banking partner, reflecting the lender’s experience in the oilfield services sector.

Dyson said: “It was a privilege to support this client in securing the right financing structure to fuel their next stage of growth.

“Subsea energy services require specialised equipment, global reach and the ability to scale quickly, and our role was to make sure they had a funding partner who understood that complexity.

“At nFusion Capital, we take pride in helping strong companies access the capital they need to expand with confidence and stay ahead in a demanding industry.”

The facility is expected to provide KOIL Energy with greater financial flexibility as it continues to invest in its rental offering, which the company sees as a key driver of future profitability and long-term growth.

Kurt Keller, Chief Financial Officer at KOIL Energy, said: “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.

“Importantly, the facility also provides us with additional liquidity and financial flexibility as we continue to scale the business.”