hard · Corporate Credit Analysis credit-metrics

An ABL facility has a borrowing base consisting of 85% of eligible receivables and 60% of eligible inventory. A company has 200M in gross receivables (with 20M over 90 days) and 150M in gross inventory (with 30M slow-moving).

If the lender applies a 15M dilution reserve, what is the total availability?

  1. 195M
  2. 243M
  3. 225M
  4. 210M

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