38 Studios gets another chunk of its $75M loanJanuary 7th, 2011 at 12:13 pm by Ted Nesi under News and Politics, On the Main Site
38 Studios had a good reason to firm up its May 1 target date for relocating to Rhode Island – it was worth nearly $10 million to the company.
The EDC just confirmed to me that the company recently received another hefty infusion of cash from its $75 million loan:
The video game company founded by former Red Sox pitch Curt Schilling got the $9.4 million payment last month after it confirmed plans to move from Maynard, Mass., to Providence by May 1, EDC spokeswoman Melissa Chambers told WPRI.com on Friday.
38 Studios has now received $22.4 million, or 30 percent of the loan money, in two installments. The first payment of $13 million was handed over when the loan transaction closed on Nov. 3.
38 Studios is moving to the six-story, 104,316-square-foot One Empire Plaza building in Providence, which has been vacant since Blue Cross & Blue Shield of Rhode Island relocated to a new facility near Providence Place mall. Renovations are currently under way at the building, owned by Boston-based Berkeley Investments.
38 Studios’ next payout will be for $17.2 million, according to the timeline in the bond documents. It can obtain that money once it relocates to Rhode Island and employs 80 full-time workers here.
The company is tentatively scheduled to have all but $11 million of the total loan money by the end of this year. It cannot receive the remainder of the money until it pays off the rest of the loan, which is supposed to happen by November 2020.
Full story on WPRI.com. Back in September, I did a big story explaining how the loan payouts to 38 Studios are structured, and I included a year-by-year timeline at the bottom of it. That story is here if you want to check it out.