FI 413 Lecture Notes - Lecture 11: Prime Rate, Expense Ratio, Negotiable Order Of Withdrawal Account
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In this question, all dollar amounts are in thousands. Refer to the spreadsheet on d2l, loc class example. You are a lending officer for el bank, and are provided with historical financial data on d2l for. Dregs, a small brewery business 100% owned by pat o"doul. Dregs has a maturing line of credit of with another bank, and is asking for a , 3-year line from you, with an immediate draw of to fully repay their current loc lender. Dregs also has an existing term loan balance of with another bank, that is secured by. Any new loan cannot have seniority over this term loan. After major expenditures in 2014 to expand capacity, which now stands at almost double current production, no significant capital expenditures are expected for several years. You require unencumbered collateral for all c&i loans. You set an advance rate of 80% for customer receivables of less than 60 days of age.
