Reborn as a tycoon in Hong Kong

When the price of gold fell below US$180 per ounce, Lin Baicheng became more concerned about the daily price of gold. However, he did not watch the market often, and still asked Isabella to keep an eye on the prices and report to him.

Therefore, when the price of gold fell to US$175 per ounce on the morning of April 7, Los Angeles time, Lin Baicheng called Wade Thomas and said that he was going to visit him at Goldman Sachs to talk to him about 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 of financing I raised from Goldman Sachs is US$500 million. The annual interest rate is 12% for half a year. For half a year, it is 6%, US$30 million, right?"

"Yes, that's the number."

Wade Thomas nodded: "Alan, although you have used this fund for less than half a year, if you choose to return the financing now, the interest will still be calculated on the US$30 million for half a year."

"I know that."

Lin Baicheng nodded to express his understanding. The financing time was long and the interest rate was preferential, but the time was fixed. Otherwise, if he chooses to raise funds 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, wouldn't Goldman Sachs lose money? Goldman Sachs will definitely not do this kind of loss-making business. It is not that easy to take advantage of financiers.

"Thomas, I am going to pay back the interest of 30 million US dollars, and then raise funds to continue investing in futures."

"So, Alan, you are not ready to settle the matter?"

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

"Of course, tax will be deducted from the settlement. Since I still want to invest, what should I do with the funds transferred out during the settlement?"

Lin Baicheng nodded. He was not stupid. He paid taxes to the United States in vain and was full.

"How much are you planning to raise this time, Allen, and how long will it take?"

Wade Thomas asked aloud, of course he would not advise Lin Baicheng not to invest in futures anymore. Only Lin Baicheng can make money by investing in Goldman Sachs. He and Lin Baicheng are good friends not because Goldman Sachs can make money from Lin Baicheng.

"After deducting the US$30 million returned to Goldman Sachs, I still have US$170 million in funds. 5 times leverage financing is US$850 million. But this time I want to raise US$1 billion. Is there any problem?"

If we raise US$1 billion, a loss of 17% will wipe out all of Lin Baicheng's principal. However, there is room for a 17% decline, which should be enough in Lin Baicheng's opinion.

Besides, if the price of gold really drops that much, it's not like Lin Baicheng won't replenish the margin later. Even if he sells Asia Television and other industries, he won't let his investment in gold futures explode.

However, it is one thing to be able to replenish funds, but it is another thing to use 10 times or even higher leverage. Lin Baicheng cannot guarantee that the gold price will not drop by more than ten percent, so it is better not to use 10 times leverage, safety first.

"$1 billion is no problem, but what about the financing time?"

When Wade Thomas heard this, he agreed without thinking. The amount was only about 6 times the leverage, which was not very high. He could make the decision himself 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 interest rate."

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

Isabella spoke up at this time: "Mr. Thomas, one year's financing time, 10% interest, all financial institutions are the same. This is not the first time our boss has cooperated with Goldman Sachs, not to mention this is 1 billion US dollars. With the financing, you can earn 100 million US dollars in one year, so you should give some discounts. I think if I look for other institutions, there will be institutions that are willing to give some interest discounts."

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

Lin Baicheng spread his hands. He was not threatening Wade Thomas, but telling the truth. For a US$1 billion financing, the interest rate would be one thousandth lower than US$1 million. Of course, he hopes that the interest rate can be lower.

"I will apply to the CEO right away and try to get a lower interest rate for you, Allen."

Wade Thomas knew that it was impossible for the interest rate to be low. After all, there were so many institutions on Wall Street. There would definitely be institutions willing to raise US$1 billion for Lin Baicheng at an interest rate lower than 10%, and Goldman Sachs definitely did not want to give up this large sum of money. Business.

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

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

Wade Thomas stood up and left. The reason why he immediately applied for a lower interest rate was because he wanted to negotiate the business immediately to prevent Lin Baicheng from being intercepted by other institutions after leaving Goldman Sachs.

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

Lin Baicheng handed over the next negotiation to Isabella, who went to talk to Wade Thomas.

Lin Baicheng's bottom line was 9.5% annual interest, and Isabella finally talked about 9.2% annual interest. In other words, by raising US$1 billion, Lin Baicheng would have to pay Goldman Sachs US$92 million in interest over the course of a year.

Goldman Sachs's bottom line is that the annual interest rate on bank loans is no less than 9%, so the 9.2% annual interest rate is completely acceptable to Goldman Sachs.

After both parties have reached an agreement, the next step is to sign the contract.

First, repay the interest of 30 million yuan from the previous financing, end the contract, and then re-draw the contract and modify the relevant figures based on the original contract sample.

Even so, the lawyers from both parties checked every clause in detail, and it took more than half an hour to determine that there were no problems. After all, it involves US$1 billion in financing, and neither party dares to be careless.

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

"Happy to work with!" "Happy to work with, Alan!"

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

Soon after, Goldman Sachs transferred $1 billion of funds to the proprietary account, and the contract came into effect.

Although the money arrived, Lin Baicheng did not proceed immediately. Instead, he prepared to see if the price of gold would fall. If it could fall to around US$170 per ounce, it would not be too late for him to buy again.

If the price really reaches 170 US dollars per ounce, Lin Baicheng will not wait any longer. He will let people buy it immediately, and then leave it alone.

This time, Lin Baicheng is not ready to go short anymore, because the long-term trend of gold prices is upward, and the possibility of another adjustment near $200 per ounce is relatively low.