hard · Private Equity
An Asset-Based Loan (ABL) has a borrowing base formula of: 85% of Eligible Receivables + 60% of Eligible Inventory.
If a company has $100M in Receivables (of which $10M are past 90 days) and $100M in Inventory (of which $20M is work-in-progress), what is the maximum draw?
- $145.0M
- $121.5M
- $124.5M
- $110.0M
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