medium · Private Credit & Debt loan-structures-instruments
An ABL facility for a manufacturer is based on a 'Borrowing Base'. Terms: 85% of eligible Receivables ($30M total, $5M ineligible) and 60% of eligible Inventory ($20M total, $3M ineligible).
What is the maximum the company can draw?
- $29.75M
- $49.50M
- $37.50M
- $31.45M
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