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As Rhode Islanders voted, trade executed on 38 Studios bond [The Providence Journal, R.I.](Providence Journal (RI) Via Acquire Media NewsEdge) Nov. 05--PROVIDENCE, R.I. -- As Democrat Gina Raimondo sweated out the last hours of voting Tuesday in Rhode Island's closely contested gubernatorial contest, someone pulled the trigger on the sale of 38 Studios bonds. The 2010 decision by the R.I. Economic Development Corp. to sell $75-million in bonds to back the video-game company's move to Providence became a smoldering political issue. The company's closure in 2012 intensified the public acrimony about what many Rhode Islanders decried as an ill-considered deal made at a time when other companies struggled to recover from a deep recession. As the state's general treasurer, Raimondo has consistently backed paying off the bonds, a stance that generated a fair amount of flak from Rhode Islanders and an all-out assault from Allan Fung, her Republican opponent in the 2014 gubernatorial campaign. Raimondo was able to withstand an advertising onslaught criticizing her stance to win the governor's seat, though she did not win a majority of votes cast. As Raimondo and other Rhode Islanders focused on exit polls yesterday, someone executed a trade of $210,000 in 38 Studios bonds at 4:54 p.m., according to the Municipal Securities Rulemaking Board, which tracks financial transactions by American government entities. The board does not publicly disclose parties to such transactions. The 38 Studios bonds were sold in three portions, or tranches as they are known in the bond business. The tranches carry different interest rates and mature in different years; 2015, 2016 and 2020. Bond trading can take place on any day when financial markets are open, but trades of 38 Studios bonds have been few since they were first issued. As exit polling yesterday may have shown Raimondo would edge out Fung, someone decided it was the right time to buy these financial instruments because state legislators are in all likelihood going to pay off the 2015 bonds. The bonds sold yesterday are a small fraction of the 2015 tranche of approximately $23.7 million, which have a 6-percent interest rate. ___ (c)2014 The Providence Journal (Providence, R.I.) Visit The Providence Journal (Providence, R.I.) at www.projo.com Distributed by MCT Information Services |