Chapter 925 Hughes [Add a Chapter]
“You set the time and we will arrange it.”
“Then let’s do it tonight.”
“No problem. How about a club on Fifth Avenue? You should know that. ”
After setting a time to meet and chatting briefly, the other party hung up the phone.
“Is it the CEO of Morgan Stanley?”
Lv Hui asked.
“Yeah.”
“Why is he so active in calling you?”
"How can we not be active in making money?" Xu Liang sneered.
The only thing that can attract these guys is profit.
And now he has in his hand, what can attract Morgan Stanley and Goldman Sachs is the debt of up to 14 billion euros owed by Christina Investment Company for the acquisition of Vivendi Group.
This money was borrowed from Standard Chartered Bank using 15% of each of Amazon and Apple held by Red Rock Fund, and then on-lended to Christina Investment Company.
Why didn’t Standard Chartered Bank directly lend money to Christina Investment Company?
Very simple.
The latter does not have many assets for collateral. If a loan is forced, it is leverage.
In an era when the Federal Reserve continues to raise interest rates and loan costs are getting higher and higher.
The interest rate of Christina Investment Company will reach 11%. This is for Xu Liang’s sake, otherwise it will definitely exceed 15%.
If you don’t believe it, just watch the Glazer family acquire Manchester United.
I have to work for capital all my life.
Moreover, he holds less than 50% of the shares of Standard Chartered Bank and 100% of the Vidy Wang Group.
Using Vivendi’s profits to create profits for half of Standard Chartered’s people is not that noble.
So it can only be Hongyan or Hanhua.
Finally.
In order to reduce risks, Standard Chartered cannot take all the 14 billion euros in loans.
Generally, for large loan projects like this, several banks join together to form a banking syndicate.
Although you make less money this way, you also share the risk.
Xu Liang obviously couldn’t wait to raise funds so slowly.
Direct Loans.
Because there is sufficient collateral.
The interest rate on his loan from Standard Chartered was only 7.2%.
But the interest on the loan to Christina Investment Company was 16.7%.
This is his company, why is the interest rate so high?
Of course there are details in it.
Generally speaking, after a company makes money, it first pays employee salaries, bonuses and various insurances, and then uses it to pay loans and interest. The remaining part is the tax base for paying taxes.
What is left after paying taxes is the company’s net profit.
Some of the world's giant companies have annual total revenue of tens of billions of dollars, but their annual interest is only five to six billion U.S. dollars, not even 10%.
Why so low?
Is the cost too high or labor too expensive?
In fact, it is neither.
It boils down to four words - reasonable tax avoidance.
In order to avoid corporate income tax of up to 35% or even higher.
Enterprises actively expand their assets and enterprises through borrowing, so that a large part of their annual income is used to repay loans and interest.
The tax base for taxation has been compressed.
The net profit is less.
Xu Liang’s high interest rate is that Vidywang and Veolia can reasonably avoid taxes while seeking benefits for themselves.
Use the interest rate difference of 9.5% to reasonably extract the corporate income tax that should have been paid to the French government.
However, this 9.5% interest rate difference obviously cannot satisfy Xu Liang's appetite.
So he plans to turn these 14 billion euros in loans into asset-backed bonds and sell them.
When buying and selling securities, you must first rate them.
High-rated bonds naturally have lower intermediary fees and are more popular.
To improve the rating.
Xu Liang is planning to enlist Hanhua and Hongmeng to guarantee the loan.
Hanhua and Hongmeng have the highest credit lines among major banks in the world, and their bonds are also rated 3A.
With their endorsement, the rating of this bond will not be low.
What Morgan Stanley and Goldman Sachs are eyeing is the sale of this huge bond.
Even if the intermediary fee is only 1%, the return of 14 billion euros is still 140 million euros.
Don’t feel less.
There are many buyers of high-rated bonds. Pension funds, university investment funds, and sovereign funds control huge amounts of wealth. You can never have too many bonds with stable returns.
What's more important is that investment banking transactions always involve profit from both ends.
1% from Xu Liang’s side, and 2% from the buyer’s side.
The reward doubled in one go.
420 million euros, more than 500 million US dollars.
It’s great to earn so much from one transaction.
——
1329 Fifth Avenue, New York, is a five-story, Baroque marble building.
It can be seen from its slightly mottled exterior wall that it has been here for a long time.
Ordinary people passing by here cannot see the sign with its name.
I didn’t know that this ordinary-looking building was one of the top clubs in the United States, especially New York’s upper class. Its founder can be traced back to John Pierpont Morgan, the top tycoon of the Morgan family known as the 'world's creditor'.
Later on, this place passed through several times and gradually fell into the hands of the Hughes family.
Yes, it is the Hughes family that produced Howard Hughes.
Speaking of which, the person Xu Liang envies the most is this guy.
Even the prototype of Marvel's Iron Man is him.
A brilliant madman.
In order to make movies, he established the world's largest private jet fleet, using more than 80 fighter jets, 135 pilots with combat experience, and employing nearly half of the photographers in Hollywood.
The final box office hit was as high as 8 million US dollars.
This is eight million in 1929.
Handsome, talented and rich, Howard is also a romantic seed.
Especially in a place like Hollywood, where beauties gather, there is no shortage of beauties.
It is rumored that this guy has dated a total of 164 Hollywood actresses, including Oscar-winning actress Katharine Hepburn, sexy goddess Marilyn Monroe, Hollywood's most beautiful stunner Ava Gardner and other peerless ones. Great beauty.
Simply enviable.
But this is far from the limit of Howard Hughes.
In addition to loving to play, he is also a talented inventor.
Howard, whose film career had reached its peak, turned his attention to the aviation industry and established the Hughes Aircraft Company, a giant in the US military industry.
When this guy was 30 years old, he personally piloted the H-1 he designed for a test flight and set a flight speed of 567.12 kilometers/hour, breaking the French's fastest flight record of 505.85 kilometers/hour.
Two years later, he flew an improved H1B aircraft and successfully completed a non-stop flight across the continental United States in only 7 hours, 28 minutes and 25 seconds, setting another world record.
For this reason, he was also hailed as the "Flying Hero" and was received by US President Roosevelt.
In addition, he also collaborated with the U.S. military to develop projects such as the "Hercules" transport aircraft, creating the largest aircraft in the world at the time. During World War II, Hughes Aircraft Company also became the most important supplier of military aircraft to the United States.
In 1939, Howard took over TWA and had an important voice in the field of American aviation. He even took the lead in opening a transatlantic route. As a result, Howard's career continued to rise and he became the first billionaire in the United States.
Hughes Aircraft Company also invented the first practical laser, the first geostationary communications satellite, and the first lunar landing probe, which also laid the foundation for the United States' future moon landing plans.
In 1953, Howard also founded the Howard Hughes Medical Institute in Delaware.
This is a non-profit medical research institute dedicated to the fields of medical research and medical education, and has also trained more than a dozen Nobel Prize winners.
In short, no matter what he does, this guy is like a god with help and almost never fails.
Later, in order to satisfy his need for seclusion, he spent a huge amount of money to build a desert hotel.
More than ten years later, the hotel developed into Las Vegas.
Hughes' investment was profitable again.
It feels like God is throwing money at his head.
The kind that can hit you wherever you go.
Inventor, adventurer, billionaire, romantic lover, if a man can combine these four labels, he will have no regrets in his life.
"Brother Liang, we are here."
Xu Liang responded, looking out through the car window at the Morgan Club hidden in the afternoon sun.
This is not his first time here.
I came here once last time when I was raising funds for Hanhua in New York.
He was not a big shot at that time.
When he came here, most people didn't know him.
Not like now...
After the bodyguard opened the car door, Xu Liang stepped out.
James Goldman and Lloyd Blankfein, who were waiting in front of the door, as well as a bald middle-aged man with a thin face wearing a brown plaid suit, quickly stepped forward to greet them.
"Dear Xu, it's so exciting to see you in New York."
James Goldman took the initiative to step forward for a hug.
Xu Liang didn’t refuse either.
After a few words of greeting, his eyes changed.
Blankfein smiled and stretched out his right hand.
"Mr. Xu, it's an honor to meet you."
Looking at the Mediterranean Sea in front of him, Xu Liang couldn't help feeling a little emotional.
John Thornton and John Thain were fighting to the death for the position of CEO of Goldman Sachs, and even he was affected.
Unexpectedly, in the end, I was taken advantage of by the son of an ordinary post office sorter in Brooklyn.
"Mr. Blankfein, nice to meet you."
After shaking hands, Xu Liang turned to the last person.
"Hello, Mr. Xu, welcome to the Morgan Club."
"Xu, Paul is the patriarch of the Hughes family and a director of General Electric Company." James Goldman introduced .
"Mr. Hughes, nice to meet you." Xu Liang smiled.
Although the Hughes family has declined now.
The famous Hughes Aircraft Company has also been divided among General Electric, Raytheon and Boeing, but no one knows how much heritage this century-old family has.
Moreover, looking at James Goldman's attitude, you know that the Paul Hughes in front of you is not simple.
The other party met for the first time and had a good attitude.
Xu Liang naturally has to show appropriate respect.
After saying hello, everyone walked inside together.
Entering through the door and passing through the not-too-long hallway, a splendid hall appears in front of you.
The hall runs through the first and second floors.
A gorgeous crystal lamp illuminates the entire hall.
This place, which used to hold banquets and receptions, is very quiet today.
(End of this chapter)