LBO S&U question

I have been having some issues with getting my LBO model to balance and think the issue is with the S&U. I had been told that, theoretically, you should refinance net debt as a use and therefore not have existing BS cash as a source (alternative being to refi gross debt and have BS cash as a source).

However when running my model this doesn't work, so looks like I have following three options to get model to balance: 1 - existing BS cash as both source and use, refi gross debt 2 - existing BS cash on neither side, refi gross debt 3 - cash as a use only, refi net debt

Are these options correct (and if so, which is market practice?) or is there an error elsewhere in my model and what I was originally told is correct?

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