easy · Corporate Credit Analysis cap-structure
How does an 'Asset-Based Loan' (ABL) typically determine the amount a borrower can draw?
- Based on the amount of common equity the sponsor has contributed at closing.
- By calculating the firm's total enterprise value using a forward-looking blended EBITDA multiple.
- Through a 'borrowing base' formula linked to eligible accounts receivable and inventory.
- By simply checking the borrower's most recent credit rating issued by S&P or Moody's.
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