MCCOY GLOBAL ANNOUNCES SUCCESSFUL CLOSE OF US$10.0 MILLION CREDIT FACILITY
McCoy Global locks in a larger, more flexible US$10M credit line, easing liquidity fears even as Middle East turmoil and a paused dividend weigh on the stock.
The most recent release (May 14, 2026) reports that McCoy Global has closed a new US$10.0 million asset-based revolving credit facility (ABL Facility) with a leading U.S. Schedule I bank. The three-year facility replaces the previous Canadian credit line, which was fully repaid and terminated earlier in Q2 2026. Borrowing availability is primarily driven by eligible accounts receivable, with inventory eligible for inclusion in the borrowing base for up to twelve months under a step-down schedule. Interest is variable at SOFR/CORRA plus a margin of 1.75%–2.25%, and there is an undrawn commitment fee of 0.35%–0.45%. Critically, no amounts are currently drawn under the new facility, and it does not increase leverage.
The facility materially improves the company’s liquidity profile. In the Q4 2025 report (March 6, 2026), McCoy disclosed net cash of $3.0M and undrawn credit facilities of $5.4M. The new ABL effectively doubles available committed borrowing capacity to US$10M, with a more flexible borrowing base and lower financing costs. The closure of the facility, especially from a U.S. Schedule I bank, signals external confidence in the company’s receivables and inventory quality—something the market likely did not fully price in after the dividend pause and the Middle East-driven logistics warnings. While the facility itself is not a transformative event, it provides a tangible buffer against the cash flow uncertainty flagged in March and reduces the risk of a near-term equity raise. The announcement is genuinely new (not previously signaled), and given the stock’s steep decline and elevated uncertainty, it has the potential to act as a positive catalyst.
McCoy Global provides technology-enabled equipment and services for drilling and well construction, primarily for the oil and gas industry. The company’s flagship initiative is its “Technology Roadmap,” centered on smartProducts: the smarTR™ automated tubular running system, smartCRT™ casing running tools, and smartFMS™ flush-mounted spider systems. These products aim to improve rig safety and efficiency and are being commercialized in key markets including the Middle East and U.S., both onshore and offshore. Revenue from smartProducts accounted for 52% of total revenue in FY2025, up sharply from the prior year, and the company is transitioning toward a SaaS-like subscription revenue model for some offerings.