Harrow International School

Hedgies

The Harrow Capital Note has more onerous terms than the ISF Capital Note... When you want to sell the Harrow Cap Note, you need to pay to Harrow an amount equal to the higher of (i) 50% of the profit you make and (ii) 10% of the face value of the Cap Note... that means you will only have profit if you can sell the Harrow Cap Note for more than HK$3.3 million... if you sell the Harrow Cap Note below HK$3.3MM (that include you selling the Harrow Cap Note at a loss (i.e. below HK$3mm)), you still need to pay the school the 10% fee (HK$300k)..

for the ISF Cap Note, you need to pay the school only if you are making profits on the cap note (50% sharing)...

Hedgies

原帖由 nolimit_gimi5 於 11-2-21 10:51 發表
Hi Hedgies, does it say what are the benefits of holding the capital note? and when can we sell it? also do you think it is worthwhile to invest into the HK$600,000 note? thanks

If you buy a Cap Note, you will fall into the first priority category... regarding when you can sell, as long as you are not using the Cap Note to nominate a kid who IS STUDYING at the school, you should be able to sell it any time. but if your kid is studying at Harrow under the Cap Note, then you cant sell it until the time when your kid leaves Harrow.. but I would suggest you check with the school on the selling restrictions...

On debenture (priority 3 category), you cant transfer the debenture to a third party.. so no upside at all... you would get back the 600,000 from the school when your kid leaves...