State selects new financial adviser: Public Resources Advisory Group

(Updated 10:50 a.m.)
PROVIDENCE – Public Resources Advisory Group has been selected as the state’s financial adviser, according to General Treasurer Seth Magaziner, who described it as one of the top-ranked financial advisory firms in the nation.

The state has entered into a two-year contract with New York City-based PRAG, which will be renewable at the state’s option. PRAG is replacing FirstSouthwest, according to Magaziner’s office.

“Rhode Islanders need to trust in the financial management of our state,” Magaziner said in a statement. “PRAG is one of the nation’s leading financial advisers to state governments, with a record of providing market expertise, independent advice and quality service. The treasurer’s office proactively recruited a national pool of qualified applicants in our search for a trusted financial adviser. Our selection of PRAG ensures Rhode Island will be served by one of the top-ranked financial advisers in the nation.”

Based in New York City, PRAG is an adviser of the largest state bond issuers. Clients include most New England states, as well as California and New York. According to information from Magaziner, since 2005, PRAG has been ranked No. 1 by average dollar amount per issue, and the firm has primarily been the top adviser in the nation for general obligation long-term municipal financings in most years over the past decade.

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“Treasurer Magaziner led a thorough search, and coordinated closely with the Office of Management and Budget,” Gov. Gina M. Raimondo said. “PRAG has tremendous experience advising states around the country.”

PRAG, founded in 1985, has advised clients on more than $823 billion of transactions and assisted more than 60 state and state-level authorities and agencies on the issuance of securities.

The firm will advise the R.I. Treasury, Department of Administration and Office of Management and Budget, and also will work closely with the state’s bond counsel, rating agencies, trustees and other professionals involved in the state’s financial activities, Magaziner’s office said.

First Southwest Co. was one of the firms targeted for fraud and misconduct in Rhode Island’s lawsuit against the architects of the 39 Studios loan guarantee. The Dallas investment bank acted as the state’s financial adviser on 38 Studios, Curt Schilling’s video game company that went bankrupt.

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