Module VI· Revolver & Cash Plug MechanicsIntermediate
Question

How do you model the revolver plug with IF / MAX functions?

Answer

Calculate cash before revolver. If cash before revolver is below minimum cash, draw amount equals MIN(revolver availability, minimum cash - cash before revolver). If cash is above minimum and revolver is outstanding, repay with excess cash capped by revolver balance. Use MAX to prevent negative draws and MIN to cap by availability.