Reborn as a Hong Kong Tycoon

Chapter 164 Refinancing

When the price of gold fell below $180 per ounce, Lin Baicheng paid more attention to the daily price of gold.However, he didn't check the market often, and let Isabella keep an eye on the price and report to him.

Therefore, when the price of gold fell to 4 US dollars per ounce on the morning of April 7, Los Angeles time, Lin Baicheng called Wade Thomas, saying that he was going to Goldman Sachs to visit him and talk to him about the expiration Financing repayment matters.

In the afternoon, Lin Baicheng took Isabella and the lawyer to Goldman Sachs, and Wade Thomas arranged a conference room.

Goldman Sachs also had lawyers and other staff present, but it was Wade Thomas who called the shots.

Lin Baicheng said: "Thomas, the amount I raised from Goldman Sachs is 5 million US dollars, the financing is half a year, the annual interest rate is 12%, and the half-year is 6%, 3000 million US dollars, right?"

"That's right, it's this number."

Wade Thomas nodded: "Alan, although you have used this fund for less than half a year, if you choose to return the financing fund now, the interest will still be calculated as half a year's 3000 million US dollars."

"I know that."

Lin Baicheng nodded to understand that the financing time is long and the interest rate is favorable, but the time is fixed.Otherwise, if he chooses financing for one year at the beginning, but returns the financing funds to Goldman Sachs after one month of financing, and only pays one month's interest, then Goldman Sachs will lose money?Goldman Sachs will definitely not do this kind of loss-making business. It is not so easy to make money from financiers.

"Thomas, I plan to repay the interest of 3000 million US dollars, and then raise funds and continue to invest in futures."

"So, Alan, are you ready to settle the settlement?"

Wade Thomas was a little surprised. He didn't expect Lin Baicheng to invest in futures, and it seemed likely that he would invest in gold futures.

"Of course, taxes will be deducted after the settlement. Since I still want to invest, what do I do with the funds transferred out of the settlement?"

Lin Baicheng nodded. He is not stupid. He paid taxes to the United States for nothing and was full.

"Then how much Alan are you going to raise this time, and how long will it take?"

Wade Thomas asked aloud. Of course, he would not persuade Lin Baicheng to stop investing in futures. Only Lin Baicheng can make money by investing in Goldman Sachs. The reason why he and Lin Baicheng have a good relationship is not because Goldman Sachs can make money from Lin Baicheng.

"After deducting the $3000 million returned to Goldman Sachs, I have $1.7 million left, and the 5 times leveraged financing is $8.5 million. But this time I want to raise $10 billion. Is there any problem?"

If it raises 10 billion US dollars, a loss of 17% will lose all of Lin Baicheng's principal, but there is room for a 17% decline, which should be enough in Lin Baicheng's opinion.

Besides, if the price of gold really falls that much, it's not like Lin Baicheng won't replenish the margin later, even if he sells Asia TV and other industries, he won't let the investment in gold futures go bankrupt.

It's just that it's one thing to replenish funds, and it's another to use 10 times or even higher leverage.Lin Baicheng can't guarantee that the price of gold will not fall by more than ten percent, so it is better not to use 10 times leverage, safety first.

"There is no problem with $10 billion, what about the financing time?"

When Wade Thomas heard the words, he agreed without even thinking about it. This amount is only about 6 times the leverage, which is not too high, and he can make his own decision and agree.

"The time is one year."

Lin Baicheng raised his index finger and said, "As for the interest rate, I hope Goldman Sachs can give me a lower rate."

Wade Thomas immediately said: "Allen, 10% interest is already the lowest."

Isabella said at this time: "Mr. Thomas, one year of financing time, 10% interest, all financial institutions are the same, this is not the first time our boss and Goldman Sachs have cooperated, let alone this is 10 billion US dollars You can earn million U.S. dollars a year, so you should give some discounts. If I want to find other institutions, there will be some institutions that are willing to give some interest discounts."

"Thomas, if Goldman Sachs can't give me a lower interest rate, then I can only find another institution."

Lin Baicheng spread his hands, he was not threatening Wade Thomas, but telling the truth. For a financing of 10 billion US dollars, one thousandth of the lower interest rate is 100 million US dollars. Of course, he hopes that the interest rate can be lower.

"I'll apply to the CEO right now, and try to apply for a lower interest rate for you, Alan."

Wade Thomas knew that it was impossible for interest rates to be low. After all, there are so many institutions on Wall Street, and there will definitely be institutions willing to raise $10 billion for Lin Baicheng at an interest rate lower than 10%. Goldman Sachs certainly does not want to give up this large sum business.

Lin Baicheng smiled and said, "Then I'll wait for good news from Thomas."

"Alan, wait a moment, I'll be back in a while."

Wade Thomas got up and left. The reason why he immediately applied for a lower interest rate was to negotiate the deal immediately, lest Lin Baicheng be intercepted by other institutions after leaving Goldman Sachs.

Wade Thomas didn't keep Lin Baicheng waiting too long, and came back in less than half an hour.

For the next negotiation, Lin Baicheng handed it over to Isabella, and Isabella went to talk to Wade Thomas.

Lin Baicheng's bottom line is 9.5% annual interest, and Isabella finally talked about 9.2% annual interest.That is to say, to raise US$10 billion, Lin Baicheng will pay Goldman Sachs US$9200 million in interest in one year.

The bottom line of Goldman Sachs is no less than 9% annual interest on bank loans, so an annual interest of 9.2% is completely acceptable to Goldman Sachs.

After the two sides negotiated, the next step is to sign the contract.

First, the interest repayment of 3000 million yuan from the previous financing, to end that contract, and then to re-draft the contract, and modify the relevant figures on the basis of the original contract sample.

Even so, the lawyers of both parties checked each clause in detail, and it took more than half an hour to confirm that there was no problem.After all, it involves a financing of 10 billion US dollars, and neither party dares to be careless.

After confirming that there was no problem with the contract, Lin Baicheng and Wade Thomas signed the contract respectively.

"Happy working!" "Happy working, Alan!"

After signing the contract, Lin Baicheng and Wade Thomas got up and shook hands.

Soon after, Goldman Sachs transferred $10 billion into a proprietary account, and the contract came into force.

Although the money has arrived, Lin Baicheng did not operate immediately, but prepared to see if the price of gold will fall. If it can fall to around 170 US dollars per ounce, then it will not be too late for him to buy again.

If the price reaches US$170 per ounce, Lin Baicheng will not wait any longer. He will ask people to buy it immediately, and leave it alone after buying it.

This time, Lin Baicheng is not going to be short again, because the long-term trend of gold price is rising, and the possibility of adjustment near 200 US dollars per ounce again is relatively low.

(End of this chapter)