hard · Corporate Credit Analysis cap-structure

LogicWare Distribution has a $100M Asset-Based Lending (ABL) facility. The borrowing base is calculated as 85% of eligible receivables and 60% of eligible inventory. At quarter-end, it has $80M gross receivables (of which $10M are over 90 days past due) and $40M gross inventory (of which $5M is held at a third-party location and ineligible).

What is the available borrowing base?

  1. $80.5M
  2. $92.0M
  3. $85.0M
  4. $72.0M

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