New RI Governor Vows to Keep an Eye on 38 Studios

November 9, 2010 -

Curt Schilling’s 38 Studios has received an initial payment of $13 million from the Rhode Island Economic Development Corporation (EDC) as part of a $75 million bond deal put together to lure the developer from Massachusetts to the Ocean State.

38 Studios is slated to receive approximately $51 million in all, with $20 million held in reserve in order to guarantee three years worth of repayments on the debt. Schilling’s firm will receive the rest of the money over the next 15 months as it meets certain milestones.

Rhode Island’s governor-elect, and opponent of the 38 Studios deal, Lincoln Chafee (pictured) stated that he was disappointed over the closing of the loan, as he would have liked to “formally contribute to the process.” He wished 38 Studios success while vowing to do everything in his power “to protect the interests of the taxpayers of our state.”

Chafee also promised to keep watch over the EDC and 38 Studios, saying, “I will, however, ensure that 38 Studios fully and completely comply with each and every commitment that it has made to the taxpayers of Rhode Island.”

A Providence Journal story features details on the fund raising used to fuel the 38 Studios deal, which will be generated by a bond sale. Moody’s gave the bonds in question an A2 rating, “three notches below the Aa2 rating on Rhode Island’s general obligation bonds.”

Standard & Poor’s rated the bonds A, “with a negative outlook,” which indicates “the possibility the rating could be lowered in the next 6 to 24 months.”

The primary job of repaying investors will fall upon 38 Studios. Moody’s said about the bonds, “Given the development stage nature of the company, loan payments from 38 Studios have inherently more risk than other revenue streams that have established track records and predictability.”

Meanwhile, another story on the Providence Journal website outlines the entire story of the deal between 38 Studios and Rhode Island, which apparently began as a result of a visit by then Governor Donald Carcieri to Schilling’s Massachusetts home earlier this year for a fundraiser.

Carcieri recounted telling Schilling that he should relocate to Rhode Island, but he added, “I wasn’t thinking anything would come of it.”


Forgot your password?
Username :
Password :

Poll

How do you feel about microtransactions in $60 video games?:

Shout box

You're not permitted to post shouts.
ZippyDSMleeSora-Chan: Blender is easy compared to 3Dmax :P08/28/2015 - 6:51pm
Sora-Chantime to take up a hobby? maybe messing around in GIMP to make wallpapers? use qCAD to design somethin? open Blender and stare at it for a couple hours trying to figure what does what?08/28/2015 - 6:41pm
Big PermAlso, yes. I've been spamming the shoutbox. I don't have much going on today, don't judge me08/28/2015 - 3:25pm
Big PermThanks, but yeah. Not sure I wanna drop that kind of cash :P I don't even mind the sound quality of my krakens, it just hurts to wear em after a couple hours.08/28/2015 - 3:25pm
Sora-Chan@Big Perm: I'm a bit of a fan of the Omega Recon3D headset from SoundBlaster. Though it is a bit expensive.08/28/2015 - 2:36pm
Big PermI actually need to look into a new headset. I have those green razer krakens and I would not suggest them. Though maybe they're better for people without glasses08/28/2015 - 11:32am
Big PermI've never heard if Apple was dominant in Japan.08/28/2015 - 11:25am
E. Zachary KnightBeats by Dre? If music videos are anything to go by, they are the only headphones in existence.08/28/2015 - 11:21am
Big PermI wonder what kind of headphones she has08/28/2015 - 11:13am
Andrew EisenMy favorite fighter character/costume of late is Lucky Chloe from Tekken 7.08/28/2015 - 10:59am
Big PermYou might be right, Zippy08/28/2015 - 9:21am
ZippyDSMleeBig Perm: Naw best ever goes to kill la kill!08/28/2015 - 9:14am
Big PermHer costume is amazing. It may be the best costume ever08/28/2015 - 8:30am
E. Zachary KnightLike I said, she looks like a fun character to play, but her costume is really obnoxious.08/28/2015 - 8:29am
MattsworknameMika was always about being a show off and using her but to crush her foes, even back in the alpha days. They just took that and maxed it to the extreme, and I LOVE IT!!!!!08/28/2015 - 5:36am
IvresseJust saw R Mika trailer myself. I do like the inclusion of Vega as the punching bag, especially with that Stone Cold Stunner knocking his mask off....but that ultra move with his face between 4 buttcheeks...class! :-)08/28/2015 - 5:20am
MattsworknameOk, finally got a chance to look at the R mika trailer for SF 5, and I Heart her so bloody much. She just looks like pure fun to play as and is SO colorful. All the YES!08/28/2015 - 3:23am
PHX Corphttp://www.gamnesia.com/news/sony-is-disabling-users-from-archiving-their-ps4-livestreams-of-until-dawn Sony is Disabling Users from Archiving Their PS4 Livestreams of Until Dawn08/27/2015 - 8:47pm
MattsworknameAndrew: SOrry I didnt get back, i went to bed before I saw your post. The Producer is listed as Arbitor36508/27/2015 - 6:06pm
Andrew EisenNope.08/27/2015 - 4:17pm

Be Heard - Contact Your Politician