medium · Corporate Credit Analysis cap-structure

Retailer X has an ABL facility with $100M of eligible inventory.

If the advance rate is 60% of the Net Orderly Liquidation Value (NOLV), and the NOLV is 80% of cost, what is the maximum borrowing availability from inventory?

  1. $48M
  2. $60M
  3. $100M
  4. $80M

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