Bond Sale Closing Paves Way For 38 Studios to Bring 450 Jobs to Rhode Island
Related Media Coverage and Links
- Video Game Industry Could Energize R.I. Economy ( The Providence Business News )
- Video Gaming Industry Could Be Rhode Island's Next Industrial Revolution (Middletown Patch)
- Mass. Looks To Attract Video Gaming Industry; R.I. took 'Wrong Approach' (Providence Business News)
- Mass. Plan Seeks Tax credits For Video Game Makers (Boston Herald)
- 38 Studios to show off its first game in March (WPRI)
- Curt Schilling’s company in RI by May (The Boston Herald )
- Schilling's 38 Studios to Move by May 1 (Biz Journals)
- Providence Equity Partners executive says video-game industry is ‘challenging’ (The Providence Journal)
- 38 Studios gets $9.4M More From RI Loan (WPRI)
- 38 Studios Gets Another Chunk of its $75M Loan (WPRI)
- 38 Studios sets May 1 for move to Providence ( Projo.com
- 38 Studios’ Future Home Gets $1-million Rehab (Projo.com)
- One Empire Plaza poised for renovations (PBN.com)
- 38 Studios CEO Jen MacLean Talks to Providence Geeks (ireport.cnn.com)
- Geeks Greet 38 Studios’ CEO Jennifer MacLean; Chewbacca Steals the Show (PBN.com)
- Inside 38 Studios' Deal: Schilling's Outreach to R.I. and What's at Stake (MHT.com)bon
- Inside 38 Studios' Deal:Schilling's Outreach to R.I. and What's at Stake (Mass High Tech)
- Two Businesses OK’d for EDC Tax Credits (Projo.com)
- Schilling:38 Studios Will Make Providence a Global Force (Game Politics)
- 38 Studios Aims to Initiate Video Game Cluster with Providence, Rhode Island HQ Selection (ADonline)
- Schilling Optimistic About Rhode Island Move
- ‘Not Without Risk’:R.I. Bets Ex-Pitcher Can Shoulder Economy (Providence Journal)
- Chafee Issues Statement on 38 Studios Deal; Says He Will Monitor the EDC (Providence Business News)
- Bond Sale Puts Money in Place for Schilling’s 38 Studios Deal (The Providence Journal)
- EDC Director: $75M Schilling Deal Was ‘Misunderstood’ (GoLocal Prov)
- Schilling's Mass. Game Company a Step Closer to RI (Yahoo)
- Schilling's Company Moves Closer to Rhode Island (Bloomberg BusinessWeek)
- Schilling's 38 Studios Lands Initial $13m (Gamasutra)
- Schilling's Mass. Game Company a Step Closer to RI (NBC 10)
- Schilling's Mass. Game Company a Step Closer to RI (NECN)
- No Hard Feelings Toward Chafee from EDC Board (WPRI)
- Schilling’s 38 Studios Bond Closes, Governor-Elect Disappointed (Providence Business News)
- Curt Schilling’s Company Moves Closer to R.I. (Boston Herald)
- RI Announces Sale of Bonds to Fund 38 Studios (The Providence Journal)
- EDC Closes on $75M Curt Schilling Loan (WPRI)
- Bond Sale Provides Cash for Schilling’s 38 Studios to Move to Rhode Island (Mass High Tech)
November 3, 2010 | Print this page | Share This |
The Rhode Island Economic Development Corporation (RIEDC) announced today the closing of its Job Creation Guaranty Program financing package that supports 38 Studios’ expansion and relocation to Rhode Island, which will bring 450 high-wage, high-skilled jobs to the state. Wells Fargo Securities Capital and Barclays co-underwrote the bonds, which were purchased in a private placement on November 2, 2010 by a group of investors that includes insurance companies, asset managers, money managers and a community bank.
The bonds were sold with three maturities with rates of 6 percent for 2015, 6.75 percent for 2016 and 7.75 percent for 2020. In addition, the offering was enhanced by bond insurance through Assured Guaranty, which resulted in an upward adjustment to the bond ratings to AAA by Standard & Poor’s and Aaa3 by Moody’s. With the closing of the bond sale and an executed lease for offices in Rhode Island 38 Studios has met its next important milestone under its Loan and Trust Agreement with the RIEDC, and will now receive $13 million as the first installment of the bond sale proceeds.
The company will receive the remaining bond proceeds – minus interest and principal reserves, fees and expenses – over the next 15 months, based upon additional milestones set out in the Loan and Trust Agreement. Nearly $20 million will be set aside in reserves to ensure that the first three years of debt payments are covered.
Media Briefing - The RIEDC will hold a media briefing on the 38 Studios bond sale closing.
WHEN: Wednesday, November 3, 11 a.m.
WHERE: RIEDC offices, 315 Iron Horse Way, Suite 101, Providence, Rhode Island
WHO: Keith Stokes, RIEDC Executive Director
RIEDC legal and financial advisors
