Haynes Parent Borrowing Base

Haynes Parent Borrowing Base. Shall mean, at any time, the amount equal to: (i) eighty-five (85%) percent of the Eligible Accounts of Haynes Parent, plus (ii) the lesser of: (A) the sum of (1) the Kokomo Facility Inventory Availability, plus (2) the Arcadia Facility Inventory Availability, plus (3) the Service Center Inventory Availability or (B) the Inventory Loan Limit applicable to Haynes Parent, plus (iii) Haynes Parent Fixed Asset Availability, less ... (iv) Reserves attributable to Haynes Parent. 2 For purposes only of applying the Inventory Loan Limit as to Haynes Parent, Agent may treat the then undrawn amounts of outstanding Letter of Credit Accommodations issued for the purpose of purchasing Eligible Inventory of Haynes Parent as Loans to Haynes Parent to the extent Agent is in effect basing the issuance of the Letter of Credit Accommodations on the Value of the Eligible Inventory of Haynes Parent being purchased with such Letter of Credit Accommodations. In determining the actual amounts of such Letter of Credit Accommodations to be so treated for purposes of the sublimit, the outstanding Loans and Reserves shall be attributed first to any components of the lending formulas set forth above that are not subject to such sublimit, before being attributed to the components of the lending formulas subject to such sublimit. The amounts of Eligible Inventory of Haynes Parent shall, at Agent's option, be determined based on the lesser of the amount of Inventory set forth in the general ledger of Haynes Parent or the perpetual inventory record maintained by Haynes Parent. View More