My Age of Investment

  Chapter 393 Underwriter's seat (seeking monthly ticket)

   "No problem, Mr. Xia, just say it directly, how much interest rate do you want?"

   Richard raised his hand and said, then finally took a sip of the coffee on the table.

  Before, it was the purpose of this trip. I didn't have much confidence. I didn't even want to drink coffee.

  Now it’s different. Through a short chat, he has a little bit of background.

  This young rich man needs a lot of money and hopes that the interest is very low.

  And these, they can provide Morgan Stanley, and can provide the best.

  Xia Jingxing answered: "The annual interest rate is 2%. I want to borrow for ten years."

Richard almost spouted the coffee in his mouth and shook his head again and again: "No, no, Mr. Xia, this is unrealistic. No institution is willing to provide such long-term loans, especially when Facebook is just a company. Listed, unprofitable companies.

  In addition, the borrowing interest rate can not be so low, the annual interest rate of 2%, let alone making money, we still have to discount interest. "

  Xia Jingxing shrugged, smiled and said, “Don’t the market say that Morgan Stanley is powerful and omnipotent? This shouldn’t bother you?

  If it's just a simple financial operation, we won't bother you anymore. "

  Richard speculated on Xia Jingxing’s words and dreamed about it.

  Just as you are hitting the other party's idea, the other party is probably also hitting his own idea, or calling the sign behind him.

  This is almost obvious. Otherwise, just talk to a few banks about syndicated loans. Why do you need to find them Morgan Stanley to make a match?

  As an investment bank and an intermediary, Morgan Stanley eats this bowl of rice. It has a great influence in the financial industry in the United States and the world.

  They come forward to match syndicated loans, and sell equity pledge loans into financial products. It is definitely more convenient than Xia Jinghang’s personal going out to find loans, and it can even save some interest.

After trying to understand the key, Richard smiled and said, "Mr. Xia, do you think this will work?

  We will give you an annual interest rate of 3%, a loan period of five years, and a one-time repayment of principal and interest at maturity to maximize the utilization of funds. "

  Xia Jingxing is basically satisfied with this condition, because the equity pledge loan that Yang Niu's Goldman Sachs came forward to match is this interest rate level and loan period.

  The economic development of developed countries is slow, deposit interest is low, and there are even cases where deposit interest is not paid and depositors pay bank management fees.

  This seems very strange to developing countries. In fact, what is behind it is the slow economic development, the low rate of capital appreciation, and the difficulty of appreciation.

  In the past few years, the market interest rate in the United States was even lower, only a few percent, which has something to do with the bursting of the Internet bubble. Interest rate cuts are promoting economic recovery.

  In the past two years, the economy has begun to vibrate again. Since June 2004, the Fed has launched ten rounds of interest rate hikes, and has not stopped its pace, and continues to raise interest rates.

  This interest rate hike is not an increase in deposit interest, but the federal funds rate, which China calls the interbank lending rate.

  The increase in the interest rate indicator means that the cost of bank funds will increase, and the interest rate of external lending will also increase.

  Xia Jingxing asked: "Let's talk about it, do you have any additional conditions?"

Seeing that Xia Jingxing is so direct, Richard, who originally wanted to be a little bit more euphemistic, stopped pretending to see himself or Morgan Stanley’s main purpose: "When Facebook is listed, we hope that Morgan Stanley will take the lead. Underwriters."

  What is PY trading?

  This is it.

  Xia Jingxing had long guessed that the other party might make this request, because when the foreigner asked for a loan from Goldman Sachs, the investment bank also made the same request.

  Compared with making some interest money, investment banks such as Goldman Sachs and Morgan Stanley want to take the underwriting list.

  This kind of big order makes a lot of money, not to mention that large IPOs are also the cornerstone of improving or stabilizing the top investment banks on Wall Street and their important influence in the world financial industry.

  This is the same as VC and PE who don’t want to miss the best startup companies.

  As long as the influence is still there, don’t have too many opportunities to make money elsewhere.

  "Will it be too early? Facebook is still a long way from listing."

  Richard waved his hand, “It’s not early or early, we like to help those friends who are still growing up.

  There is a saying in China that is not called that... Charcoal is given away in blizzard weather! "

  Xia Jingxing smiled. He felt that the managing director must have studied himself before he came, and maybe he had learned a little bit of Chinese culture in a surprise attack. No, he has started to idiom.

   "Whoever the underwriter chooses, I have left Facebook, and I may not be able to call the shots."

  Xia Jingxing deliberately tried, and deliberately mentioned it.

  Richard shook his head, "No, Mr. Xia, although you have left Facebook, you are still a major shareholder holding more than half of Facebook and can exert significant influence on this company.

  As long as you speak, I believe the current Facebook management will listen to your suggestions. "

  Xia Jingxing knew that his small actions to hide shares could not hide these top investment banks.

  These institutions have established many eyes and ears, and have rich channels for obtaining information. They can inquire about important business information that is not accessible to ordinary people.

  However, he did not want to keep concealing it, because when the equity pledge is registered, the creditor will fully adjust the Facebook page and ask for the consent of more than half of the shareholders.

  He thought about getting a loan from Goldman Sachs before, but there was nothing to exchange, because when the babes took out loans, they had promised Goldman Sachs a seat as the lead underwriter.

  So, he put his idea on Morgan Stanley, who is tied with Goldman Sachs.

  It’s hard to talk about the loss of profit, just get what you need.

  In fact, for large-scale IPOs like Facebook, there are not many underwriters to choose from. They can only choose the top investment banks, because only they have the strength and influence to trade and issue ultra-large-scale fundraising.

  Because he had already been mentally prepared, Xia Jingxing said readily: “Well, I agree, I will persuade the management of Facebook to let them reserve a seat as a lead underwriter for Morgan Stanley.”

  Richard smiled, this was exactly the answer they wanted.

  Goldman Sachs intercepted Hu's Facebook ahead of time. They have seen it for a long time, and they have been looking for opportunities to establish contact with Facebook's management and shareholders.

  The appearance of Xia Jingxing is not like a doze. Someone gives pillows.

  Such a good opportunity, they naturally have to take advantage of it.

  Now that the goal has been achieved, he is also very happy. Following this momentum, Facebook is destined to be a super-large IPO that will not be weaker than Google.

  As the main handle of the transaction, he will not be a small credit.

  Xia Jingxing suddenly said: "By the way, I have one more condition."

  Richard was a little nervous, don't fix any moths at this juncture, pretending to be calm and asked: "What conditions?"

  "After the five-year loan period expires, the loan is allowed to extend, or according to the development of Facebook at that time, a new loan can be made to cover the original loan principal and interest."

  Richard hesitated a bit. Is this because he wants to pay back the money?

   However, he did not directly question it, but calmly asked: “The development of Facebook by then refers to the listing or not?”

  "Regardless of whether it is listed or not, as long as the valuation has increased and the market has recognized it, or there is an evaluation report endorsed by a third-party agency, I hope that the loan can be extended.

  Of course, the interest will naturally accumulate, but the loan period will be extended for a period of time. "

  Richard frowned, the equity pledge loan is actually not a low-risk loan project.

  Among them, the evaluation and disposal of mortgage assets are very important.

   Facebook’s valuation is mainly endorsed by DST’s acquisition of old stocks and Microsoft’s shareholding.

  In addition, Google, Yahoo, and even Microsoft, the major Silicon Valley giants are all greedy on the social track and Facebook.

  If Xia Jinghang cannot repay the loan on time, the pledged equity should not worry about getting home.

  This link must be considered in the operation of equity pledge loans and should not be thrown into your hands.

  In addition, they will continue to pay attention to the development of Facebook. Once they find that there is a decline in valuation or business decline, they will trigger an additional agreement to require the borrower to add margin and collateral.

  Because it is not a listed company, there is no securities liquidation operation, and the liquidity of assets is relatively poor. Disposal is relatively troublesome.

  So, Richard asked his subordinates to hand over a thick stack of additional agreements, and began to discuss the relevant terms with Xia Jingxing.

  When the foreign girl was making loans, Xia Jingxing also witnessed the whole process, knowing that it was a routine operation.

  However, when it comes to such a large amount of loan agreement, he dare not sign it indiscriminately, and it has to be reviewed by the legal team of Envision Capital over and over again.

  He glanced through the thick stack of agreements, set it aside, and chatted with Richard about the outline of the content.

  After talking for almost two hours, the framework agreement was basically reached an agreement, and the follow-up work will be handed over to the executive department of Envision Capital.

  Richard declined Xia Jingxing’s invitation to lunch together, and hurried back to New York with a team of subordinates.

  As soon as he arrived at the company, Richard began to contact various banks and insurance companies, preparing to give Xia Jinghang a specific loan plan.

  On Xia Jingxing’s side, Gulfstream’s sales and real estate agent Yu An’an are all faintly urging transaction payments.

  Through the troubles, Xia Jingxing asked Liqiu Fund to advance a sum of money and paid off several transactions.

  The money is regarded as advance funds, and the money will be paid back when the equity pledge loan is received.

  Because it is a company that is completely solely controlled by an individual, no one has come forward to criticize or constrain it. It just adds a little burden to the accounting work.

  　 Thanks to the book friend, she is going to marry me, you guessed it, love is all about rewards!

  (End of this chapter)