Undrawn Revolvers...
Greetings,
I'm just wondering if undrawn revolvers would be included in determining enterprise value.
So, say for example Company A has an undrawn revolver valued at $1 million. Would this $1 million revolver be included in determining the enterprise value of Company A, even though it is undrawn?
Cheers, Neneos
No.
Only the drawn amount would be counted as debt. Think of the revolver as a credit card. Unless you use it you have not created an obligation.
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