The American Kill Line: I Can Predict the Future

Chapter 90 Hilton Hotel Layout Completed (Seeking Monthly Tickets)

A week later.

Hilton Hotels' $21 billion in preferred stock and $23 billion in subordinated debt were ultimately sold to Ron for $21 billion.

Singapore's sovereign wealth fund, Norway's sovereign wealth fund, and the Abu Dhabi Investment Authority paid the fee at an annual interest rate of 2.5%, with Barron Hilton acting as the agent for the debt.

To the uninformed, it appears that Barron Hilton, unwilling to let his family business be taken away, joined forces with three sovereign wealth funds to return to Hilton Hotels.

With Merrill Lynch and CT Group providing cover, even Blackstone Group didn't suspect anything for a while.

After two weeks of negotiations, the two sides reached an agreement.

In the past two weeks, Barron, as the son of Hilton's founder, has frequently appeared in the media, recounting the history of Hilton hotels.

This was probably the first time he had revealed some of the hardships the hotel had endured.

Some are true, some are false.

It is undeniable that the Hilton brand has reached its current status thanks to the efforts of two generations of the Hilton family.

Barron Hilton, in particular, fought tenaciously even after being stripped of his inheritance rights.

He even spent half his life reclaiming the International Hilton Hotel.

Although Hilton was later "taken away," the 83-year-old woman still did not give up.

The story is touching and inspiring.

Both the media and ordinary people who were unaware of the situation were moved by the elderly man's unwavering persistence.

Hilton Hotels President Christopher J. Nassetta was also among the first to speak out on the day the controversy erupted:

We are willing to support Barron Hilton and the Hilton family in building Hilton hotels together.

Hilton announced that it will officially launch its IPO next year.

If the Hilton family descendants are capable, they will support Hilton family members to join the board of directors in the future.

In fact, the negotiation process was not as smooth as expected.

Blackstone Group is extremely hostile to the Hilton family.

Blackstone Group invested too much, not only in money, but also by integrating 15 of its high-quality hotels into Hilton Hotels.

The reason for paying such a high price is not only because of the value of Hilton Hotels itself, but also to prepare for a subsequent IPO.

Going public and cashing out at a high price would be in Blackstone Group's best interest to its private equity arm.

However, these $44 billion in subordinated debt and preferred stock became the biggest obstacle to the IPO.

Ultimately, Barron Hilton stated that as long as Blackstone Group was involved in Hilton hotels, the Hilton family would never interfere in hotel management and decision-making.

Only after Barron Hilton's assurances did Blackstone relent.

With this debt burden lifted, Blackstone Group quickly launched its plan to list Hilton Hotels.

Meanwhile, Ron took advantage of the heightened negotiations to purchase an additional $15 billion in subprime debt from the Federal Reserve through the Mellon family bank.

During the subprime mortgage crisis, the Federal Reserve was forced to become one of Hilton's largest "creditors" in order to bail out Bear Stearns, a Wall Street investment bank on the verge of bankruptcy.

Approximately $40 billion.

At the beginning of the year, the Federal Reserve attempted to sell $3 million of Hilton's senior debt, but ultimately suffered a huge loss.

Now that someone has made an offer to buy it, the Federal Reserve, eager to reduce its debt, sold it off cheaply for 45 cents before the negotiations were even over.

Of course, this $6.75 million was also paid by the Mellon family bank, and an AB agreement was signed.

Ron received $59 billion in subprime debt without spending a single dollar.

This is comparable to Blackstone Group's acquisition of Hilton Hotels.

The cost is the subscription share of the third hedge fund.

Given Ron's current terrifying returns, many people are eyeing his third fund next April.

These are some of the top conglomerates.

Some things can be refused, while others cannot.

Since he couldn't refuse, Ron naturally wanted the other party to show sincerity as well.

This isn't just happening now; Hilton Hotels will also need financial and political support once it goes public.

Even though no cash was spent, interest still needs to be paid.

$27.75 billion, with an annual interest rate of 2.5%, that's roughly $6900 million a year.

Compared to its value two years from now, this amount of money is well spent.

Even if he sells it at face value, he will still make a net profit of more than three billion US dollars.

The prerequisite is that Hilton Hotels successfully goes public.

Ron had no doubt about this; Blackstone would only expedite Hilton's IPO.

Only by going public can this deal, which has taken several years to complete, be recouped.

After Hilton agreed to convert the remaining $23 billion into preferred stock, the Mellon family bank immediately requested the conversion as well.

It was only then that Blackstone Group realized that things were not as simple as they had imagined.

But what's done is done, and they have no other choice.

"It can't be the Hilton family."

Stephen Schwarzman, far away in the East, never expected that someone would take advantage of his absence to try and take a bite out of Hilton's business.

At this point, he was certain that the Hilton family were merely puppets.

There may be resentment, but there is absolutely no way to get the Mellon family to intervene.

If they truly had that capability, the best opportunity would have been the 2008 subprime mortgage crisis.

Instead of now.

At Blackstone Group headquarters in New York, CEO Tony James thought for a moment and said to Stephen Schwarzman in the video, "Sir, could it be Nick Armstrong and his team? Or KKR?"

If the Mellon family were to get involved, it would undoubtedly be old money families like Nick Armstrong, with whom they have close ties.

Of course, it's more likely to be a competitor.

KK Group and Blackstone Group are both pioneers and rivals in acquisitions. Through the involvement of the Mellon family, KK Group can not only buy up distressed assets at rock-bottom prices, but also snatch assets from Blackstone's jaws.

Schwarzman pondered, for he too could not discern the person behind the scenes.

However, this technique feels somewhat familiar.

After a moment, he relaxed his brow and said, "Ignore them, Tony. Go spread the word about the Mellon family's cooperation. Now that we're in, let's not waste this opportunity."

What's done is done; further contemplation is pointless.

Before Hilton Hotels went public, Blackstone Group owned 100% of the company.

Now that this subordinated debt has been taken over and converted into preferred stock, it is actually more beneficial for Hilton Hotels' IPO.

Before the IPO, these converted preferred shares had no say.

As for who is behind it all, they will surely be revealed in due time.

After finishing his last order of the month and distributing his year-end bonus, Ron announced that he would be taking an early Christmas break.

The biggest bullish factors this month were the unexpectedly weak non-farm payrolls data on the 3rd and Fed Chairman Bernanke's remarks on the 6th, which led to a brief rise in the euro and gold.

Then, from the 16th onwards, the market entered a prolonged period of decline lasting about ten days.

Gold fell from a high of $1424.20 to $1371.60, a drop of 3.69%.

The euro fell from 1.3342 to 1.3150, a drop of 1.44%.

They made a small profit of $15 billion, a return of 8%.

The net asset value has reached 203.

This is the month with the lowest return since Hunter Capital was founded.

The three major US stock indexes, however, have seen decent gains, rising by more than 5% over the past two weeks.

Ron personally made a small profit of over $6 million.

However, the amount of cash available to individuals did not increase much, remaining at only $14 billion.

There's no way around it, there are just too many places to spend money.

The purchase of the building cost over 300 million yuan, which was a real sum. He also spent nearly 200 million yuan buying Nvidia stock at its lowest point.

The construction of the sand plant and the upgrading of fracturing technology cost approximately 1 million yuan.

The building renovation also cost nearly ten million US dollars.

Tesla shares will also be released from lock-up at the end of the month, representing another $3 million.

The only good news is that shale oil fields have finally broken even.

According to Bill's forecast report, daily production will exceed 22000 barrels, and the cost per barrel will be reduced to $26.

Once the fracturing technology is fully updated, next month not only will daily production reach 3 barrels, but the price per barrel will also be reduced to below $20.

In other words, starting next month, this oil field will officially begin to make a profit.

It's been tough, but finally we're seeing a return on our investment.

In a good mood, Ron went back and took a shower.

The cast and crew of "The Great Gatsby" are currently filming in New York, and I'm planning to visit the set.

Let's also see if Taylor, that capricious girl, is actually pregnant.

I asked several times, but she wouldn't tell me.

Later, he wouldn't even answer the phone.

If she doesn't get pregnant, Ron will definitely kick her to death.

He never expected that as soon as he arrived on set, Taylor would drag him out to be a laborer.

He plays a Wall Street tycoon in a role that reflects his own personality.

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