What is a Bridge Loan?

The nature of a bridge loan is completely different from that of a regular type of loan.

For ordinary commercial loans, the bank directly gives you the money and then charges a certain interest rate.

But this is not the case with bridge loans.

Although it will also charge interest, and it is still very high, but the loan is not paid in cash, but in the form of shares after the transaction is successful, and the bank will choose to hold or cash out.

Generally speaking, the tenor of a bridging loan is shorter, not more than one year, or even two or three months.

For example, bridge loans in beautiful countries are short-term financing provided by banks or intermediaries in order to meet the capital needs of the normal operation of their service companies before arranging more complex medium and long-term loans.

When the official loan arrives, the bank will withdraw the funds.

Ji Cheng originally wanted to buy Columbia Films with empty gloves White Wolf, and then let Sony buy it at a high price, naturally, he didn't need the bank to provide him with medium and long-term loans, as long as the bridge loan transitioned, and after Sony officially acquired Columbia Pictures, he could repay the bank money.

Normal commercial loans in beautiful countries are about 4.5 percent, and bridge loans are generally two to five points higher, with interest rates ranging from 6.5 percent to 9 percent.

Ji Cheng expects to take a bridge loan of $4.1 billion, with a loan term of three months to half a year, and according to the interest rate, if the loan is completed for one year, he will probably have to pay 266.5 million to 369 million, and in half a year, he only needs to pay more than 100 million, and if it is three months, the interest paid may be tens of millions of dollars, less than 100 million.

And if he can sell Columbia Pictures to Sony, the income will be at least 750 million, and even if the interest of more than 100 million is removed, he can still earn more than 500 million dollars, which is the most conservative estimate.

Of course, Ji Cheng will definitely calculate this interest to Sony, that is, to ensure that he earns more than 750 million on Sony.

As for the Warner lawsuit, Ji Cheng didn't want to prepare money at all, because this level of litigation can't be concluded in a short period of time, and he can wait until Sony buys Columbia Pictures to throw this trouble over.

Wall Street, Citibank's headquarters.

Ji Cheng took Steve. White and several of the company's legal and accounting counsel met with Citibank Chairman John Brown. Li De and the high-level.

Citibank is the closest to him and is his first choice for loans.

"Ji, my old friend."

"Haha, Li De, how are you doing?"

"Very well, what about you?"

"I'm back to Asia."

A few words of greeting.

Ji Cheng and John. All the men and horses led by Li De and the others sat down.

Although this is a small conference room, there are not many people on both sides, and the conference table is just full of people, and Ji Cheng's old friend John is also there.

John. Li De went straight to the topic, "Before you came, you told me that you wanted a bridge loan?" Can I ask for money? ”

Since you want to borrow other people's money, the purpose must be explained to others, Ji Cheng has nothing to hide, "I am ready to buy Columbia Pictures, but you also know that the company's offer is a bit high, and I can't take out so much money for a while, so I will borrow a little money first, buy Columbia Pictures first, and return it to you when the funds are raised from other channels." ”

"Huh?"

"You're buying Columbia Pictures?"

"Mr. Ji, is it so big?"

The Citibank executives, who were familiar to him, were all surprised.

John. Li De was also stunned for a moment, his brows furrowed without a trace, and then he retracted, and no one noticed this micro-expression, "How much money do you want?" ”

Ji Cheng told John the detailed data. Li De, this kind of thing must be explained, otherwise no matter how good the relationship is, people will not borrow money, "Columbia Pictures quoted me at 20 US dollars per share, that is, 2,518.5 million US dollars, in addition, I want to inherit the huge debt of 1.6 billion US dollars from their company, I need about 4.1 billion, and I expect to be able to repay it in about half a year." ”

With $4.1 billion borrowed for half a year, even if calculated according to the lowest interest rate of the bridge loan, he would have to pay more than $130 million in interest, with Columbia Pictures as collateral, and the $4.1 billion bank is not afraid of Ji Cheng's debts.

There is a huge amount of interest to take, and there is no need to worry about defaulting on debts, so it stands to reason that the bank will definitely be willing to borrow.

But John. Li De's answer surprised Ji Cheng, and he said almost without thinking: "Ji, please forgive me for not being able to promise such a huge bridge loan." ”

Well?

Do you have money to make?

Ji Cheng felt quite surprised, and he tried to persuade the other party: "Is it because I didn't find a guarantee company to come over?" If you need it, I can find someone to vouch for it. ”

He felt that it was okay not to find someone to guarantee him based on his relationship with Citibank, but now Citibank didn't seem to be very happy, and Ji Cheng felt that it was not impossible to find a guarantee company to pay more guarantee fees.

However, John. Li De's attitude is still the same as just now, "It's not a question of guaranteeing or not guaranteeing, it's that $4.1 billion is too much, if you need a bridge loan, the funds are less than $1 billion, I can promise to lend you, $4.1 billion is really too much." ”

A billion dollars is not enough.

However, Ji Cheng didn't think much about it, "Okay, one billion is one billion, what is the interest rate?" ”

John. Li De rubbed his fingers, "Nine percent interest." ”

it!

You're really black!

Although the interest rate on a bridge loan can indeed reach up to 9%, but I have such a good relationship with you, you will slaughter me when you come up?

Ji Cheng thought that John. Li De was familiar with it, he simply didn't refuse or agree, but said, "I'll go back and think about it." ”

"Okay, call me anytime if you want money, and I'll have someone ready for you." John. After Li De finished speaking, he stood up, "I'm still a little busy here, John, you can send Mr. Ji downstairs." ”

"Okay." John also stood up.

Ji Cheng and John. Reed said goodbye and took Steve with him. White and the rest of the company left.

Downstairs.

Ji Cheng turned around and said, "John, go back." ”

"Let's talk privately?" John said suddenly.

Ji Cheng saw that John seemed to have something, so he pointed directly to the car and said, "Come and talk in my car." ”

"Hmm." John nodded.

The two entered the second generation of Silver Thorn.

Ji Cheng asked the driver to get out of the car first.

At this time, John looked sideways at Ji Cheng and said meaningfully: "Ji, I haven't known you for a short time, you listen to me, don't go to State Street Bank and Pioneer Group for a bridge loan." ”

Ji Cheng didn't understand what this sentence meant, "What's wrong?" ”

John shook his head and said: "There are some things that I can't say clearly, but everything I'm talking about now is authorized by our chairman, otherwise he wouldn't let me send you downstairs, anyway, if you have something important next, don't go to State Street Bank and Vanguard Group, especially the end of soybean futures, as for the billion-dollar loan on our side, let me tell you, the chairman deliberately opened a high interest rate, just don't want you to really borrow, he is protecting your business secrets." ”

Ji Cheng understood it at once!

Although John didn't say anything, he revealed a lot of information.

If nothing else, State Street and Vanguard have been turned against the Rockefeller family.

It can't be said that it is the opposite, after all, they are still willing to continue to short soybean futures with themselves.

Then there is only one possibility left, that is, State Street Bank and Pioneer Group have obtained a certain amount of support from the Rockefeller family in business, in exchange for enough benefits, except for soybean futures shorting, they will also stand on the same line with Ji Cheng, don't think about anything else, and even Ji Cheng will find a loan, it is possible that after these two companies get his trade secrets, they will tell the Rockefeller family, and then attract Rockefeller sniping.

As for Citibank, it is very likely that it has also reached a certain agreement with the Rockefeller family, but the contradictions between the two sides are relatively deep, after all, the business coverage is almost the same, so when Citibank does not cooperate with Ji Cheng, even if it gets the trade secrets, it will not be willing to tell the Rockefeller family.

This is not to say that Citibank and Ji Cheng have a good relationship, but once the Rockefeller family grows stronger again, Citibank will be crushed.

I'm really!

These guys are really good at picking and picking!

Now that these financial institutions have the possibility of selling themselves, Ji Cheng will definitely not borrow money again, but he urgently needs a large amount of money, is there really no way?

On the surface, it seems that he can choose other financial institutions, but in fact, Ji Cheng understands that since the Rockefeller family can even rebel against State Street Bank and Pioneer Group, two companies that have a close relationship with him, then I am afraid that the situation of other financial institutions is similar, at least in the beautiful country.

Could it be that he really can't borrow $4.1 billion in a beautiful country?

Sitting in the car on the way back, Ji Cheng became in a bad mood.

Once he can't come up with so much money, he won't be able to buy Columbia Pictures, and he won't be able to think about the $750 million at his fingertips.

Actually, this is still a small matter.

What's more, if Columbia Pictures knows that he repents, I'm afraid Coca-Cola will not be able to bypass him first.

Isn't regret the same as molesting the other party?

Coca-Cola was in a hurry to use money, and you played it like this, not negotiating with others, but you regretted it and didn't clean up Ji Chengcai.

At that time, Ji Chengke will be an enemy from top to bottom in the entire beautiful country, no matter how powerful he is, he can't stop it.

Moreover, in order to be able to earn Sony's $750 million, Ji Cheng had to buy Columbia Pictures anyway.

No way!

Can't sit still!

Ji Cheng immediately made a decision in his heart, and he immediately took out his mobile phone and dialed the number on Ri Ben's side.

The financial institutions of the beautiful country can't believe it, but it's not good on the other side?

Ji Cheng has a good relationship with Sumitomo Group and Mitsubishi Group, and there is indeed money to be made from bridge loans, so he believes that these two companies will definitely want to earn this money.

Steve. White sat in the front passenger seat and looked at Ji Cheng.

At this time, Ji Cheng's phone was also connected.

A barrage of Japanese came from the other side.

Ji Cheng didn't understand the meaning, he took the initiative to say in Chinese: "Mr. Matsushita, it's me, Ji Cheng." ”

Matsushita Masayuki immediately switched to broken Mandarin and said, "Oh, it's Ji Jun, what's the matter with calling me so late?" ”

Ji Chengdao: "I want to ask you privately, if I find a bridge loan from Sumitomo Bank, is there any hope for a large amount of money?" ”

"Bridge loans? Is your company ready to go public? Matsushita asked.

Ji Cheng did not directly explain, "I am going to acquire a company, and I have to use a lot of funds." ”

Masayita Masayuki spoke a few words of Mandarin and Japanese, perhaps he found that it was impossible to communicate, so he simply changed to English, "You want more money, as long as there is a mortgage from the acquired target company, with my father's relationship, I can help you get money from Sumitomo Bank, provided that the appraised value of the target company is equal, but it may take a long time for a large amount of money to be remitted to your company across borders, are you sure you can wait that long?" ”

Ji Cheng asked, "How long?" ”

Matsushita Masayuki was silent for a while, as if calculating the time of arrival, "First of all, if you want a bridge loan, Sumitomo Bank will definitely send someone to evaluate the valuation of the target company, and it will take about two weeks here, because we are not familiar with the company in the beautiful country, and we have to evaluate it up and down, if it is a local financial institution in the beautiful country, it will take a lot less time, and then after the evaluation is over, I will have to talk to you in detail about the details of the bridge loan, such as the interest rate, repayment period, etc., at least one or two days here, The next step is to raise funds to lend you, which will take another one to two weeks, and it will take a month. ”

A month is too long.

Ji Cheng can't wait that long, he will sign a contract with Columbia Films in a week at most, and even if the two parties negotiate the deadline for the arrival of paid-in capital, the first payment will definitely be remitted to the other party's account within a month, if it is usual, he can also take out more than a billion dollars in his hand first, but the problem is that it is already July, and soybean futures need capital operations, and if he takes out this money, there is no way to short.

He couldn't wait that long.

However, Ji Cheng also unexpectedly learned one thing, that is, with the relationship of the Panasonic family over there, he can get money from Sumitomo Bank, it is just a matter of time, if he wants to use a large amount of money in the future, such as the most fierce confrontation with the Rockefeller family, he does not need to look at the face of the local financial institutions in the beautiful country, let alone worry about these financial institutions colluding with the Rockefeller family to leak their secrets in private.

This is good news for Ji Cheng.

It's just that he won't need it for the time being!

Ji Cheng and Matsushita Zhengxing exchanged a few words of greeting and hung up the phone.

His heart grew heavy.

Myself...... It seems that there is really no way to raise money in a short period of time.

Is it really going to break the contract?

Although he has not signed a formal contract with Columbia Films, he does not have to worry about paying liquidated damages, but the problem is that in this way, his reputation will be ruined!

What to do?

What do you have to do to get the money in a short period of time?

Ji Cheng kept thinking.

At this time, Steve was sitting in the passenger seat. White suddenly asked, "Mr. Cheng, are we having a financial problem?" ”

Ji Cheng raised his head and said with a wry smile: "I can borrow the money, but it will take a long time to arrive, and I can't wait that long." ”

"Citibank's interest rate of 9 percent is really too high." Steve. White nodded in agreement, and then said: "Even if it is a junk bond, there is no such high interest rate. ”

He doesn't know the real situation yet.

Ji Cheng was about to explain it immediately, but suddenly, he thought of Steve. What White said just now, he suddenly raised his head, "Steve, what did you just say?" ”

Steve. White was stunned for a moment, "I said that the nine percent interest rate is a little too high. ”

"Not that." Ji Cheng shook his head.

Steve. The second monk of White was puzzled, and said tentatively after a little recollection: "Even if it is a junk bond, there is no such high interest rate?" ”

"That's right! That's it! ”

Ji Cheng's eyebrows danced in an instant!

He finally knew how to get a lot of money in a short period of time!

That's right, junk bonds!

It's the 80s, and junk bonds are one of the main means of mergers and acquisitions of beautiful country companies!

There is a saying in the business circles of the beautiful country, that is, "when you need money, find Dechong Securities Company"!

Milken, the hero of Dechong Securities, is known as the father of junk bonds, a legendary elder in the financial industry, who almost single-handedly influenced the financial affairs of the beautiful country in the entire 80s!

Suffice it to say, no matter how much money you want, as long as you find Milken, the other party can get it for you.

This is not a joke, just take MCI in order to fight AT&T's monopoly on the long-distance telephone market, looking for Milken to raise two billion dollars, it stands to reason that so much money, no matter how powerful the intermediary agency has to spend a lot of time to raise, but Milken got it for MCI in a short time, and then issued junk bonds to fill it, you can imagine how powerful this person is.

And his record is far more than that, the most classic is the example of helping Triangle Company to acquire the National Can Company.

At that time, the annual revenue of the Triangle Company was only $29.1 billion, while the annual income of the National Can Company was $1.9 billion.

But Milken was intrigued by Triangle's idea and readily agreed to raise money for Triangle's junk bonds, so Milken found a bank and asked them to lend to Triangle, the collateral was the assets of the target of the acquisition, and Milken promised that he would then issue junk bonds for Triangle to repay the bank's loan.

If other people had told the bank that, I'm afraid it would have been out a long time ago.

But at that time, Milken was calling for wind and rain in the junk bond market, and no bank could refuse him, and the bank took over the deal with no loss.

In the end, Triangle successfully acquired the National Can Company, which cost a total of $465 million, while Triangle Company only spent $70 million.

This is still just two examples, if you can't see that Milkendo is awesome, then the next example will definitely subvert everyone's cognition.

In 1989, KKR made a hostile takeover of RJR Nabisque, a deal known as the "Acquisition of the Century" that shocked the world with a purchase price of $25 billion, becoming the largest leveraged buyout in history.

But one thing that no one can imagine is that KKR spent only $15 million on the $25 billion in funds it spent, and the remaining 99.94 percent of the funds were raised by Milken's issuance of junk bonds.

Now you know how awesome Milken is!

What is even more unimaginable is that in 1986 alone, Milken underwrote $125 billion in junk bonds.

The most important thing is that Milken has a very good reputation, at least for customers, as long as you come to the door, he will definitely help you keep it secret, and the bank will also sell him face to achieve absolute confidentiality.

Because today's Milken's influence in the financial world of the beautiful country is comparable to the existence of the Morgan family!

Ji Cheng doesn't have to worry that his acquisition of Columbia Pictures will leak out!

Okay, let's find Milken!

Ji Cheng finally had a way, and he breathed a long sigh of relief.

However, he still has a small worry in his heart, that is, he needs a huge amount of money of 4.1 billion US dollars this time, and I don't know if Milken will accept it.

After all, the other party does not accept all orders, and they have to listen to the plan before deciding whether to accept the order.

Ji Cheng felt that his plan must be credible, and he was confident that he would convince the other party.