WSO PE Guide - Basic LBO #3

Question on the third basic LBO exercise (apologies in advance if this is addressed in the video walk-through but am trying to practice discretely at work):

In the debt schedule, the formula for bank debt paydown is slightly different than in previous exercises. Whereas in previous LBO practice models the paydown formula is

=MIN(Beginning Bank Debt Balance, Beginning Cash Balance + Levered Cash Flow - Minimum Cash)

the formula in exercise #3 also includes cash interest, so the formula would be

=MIN(Beginning Bank Debt Balance, Beginning Cash Balance + Cash Interest + Levered Cash Flow - Minimum Cash)

Additionally, in the Total Net Debt sub-schedule, the interest per the WSO answer is not net of any cash interest like in previous models and the paydown doesn't include any change of cash like in previous models. The interest line item in the P&L is still basically pulling net interest though.

Could someone please explain conceptually the correct approach? This seems like it should be simple but I would appreciate some clarity. For what it's worth, the bank debt paydown amount varies slightly if you model according to the LBO Basic 1&2 methods vs the LBO Basic 3 method.

Thank you all.

Edit: Also, in the WSO answer on the 3rd basic LBO, they are summing Beginning Cash + Cash Interest + Change In Cash to get to EOY balance, whereas in other models, they just are summing the BOY + Change in Cash lines

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