Do publicly traded companies use revolving credit facilities?
Absolutely. Publicly held companies use revolvers for the same reasons any company uses them-to accelerate cash flow. As the capital markets continue to grow and the IPO market continues to operate efficiently, increasing numbers of smaller companies gain access to the public equity markets. Even newly public companies use revolving credit facilities to optimize the use of existing assets to provide working capital. A revolving credit facility often provides a much lower cost source of working capital than raising additional equity.
