On a few deals I have seen cash included in the nwc peg (in purchase agreement). Why?

likefunny
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None of you have a clue what you are talking about

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But are there more than two double entries? Debit, credit, no it is the third entry that is the true part to enlightenment

Yea idk loi stated cash free debt free but they’ve included cash in peg

like

Is it an FSI deal with a net capital concept?

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What industry?

Restricted cash? Petty cash? Intramonth cash funding requirement? Jonny Cash wants his money back and he's coming from the grave Cash?

Could be anything

like

Purchase was on cash-free debt free basis. So confused as to why it’s included

It’s not cash free if they want that cash though. Am I missing something?

Is it restricted cash? Like certain cash being used for operational purpose has to be included in the deal

^

Is it a casino/gaming business that has to maintain a certain level of cash in the vault to payout?

Cash to run the business?

You were looking in the reported NWC section

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