CQS Rig Finance Fund Limited: Monthly Shareholder Fact Sheet
CQS RIG FINANCE FUND LIMITED
Monthly Shareholder Fact Sheet
CQS Rig Finance Fund Limited (the "Company") a closed-ended
investment company incorporated in Guernsey, is pleased to announce
that its Monthly Fact Sheet for September 2009 is now available
on the Company's website and includes information on the top ten
investments and outstanding borrowings:
During September, the price for WTI crude oil for October delivery
fluctuated between $65 and $73 per barrel. In the wider markets,
positive sentiment persisted and equity levels edged higher. High
yield bonds experienced another robust month with the Barclays Pan
European High Yield index returning 7.4%.
On the drilling front, BP Plc awarded a three year contract to
Transocean Ltd. for its ultra-deepwater semisubmersible rig Deepwater
Horizon. The fixed charter has an estimated day rate of USD496,000
per day for a drilling assignment in the US Gulf of Mexico. This is a
solid rate and it is encouraging to see another major E&P company, in
addition to Petrobras SA, starting to award contracts.
The Company's portfolio continued to make gains over the month,
primarily from three investments.
The Petrorig 3 bonds were marked up during the month after its sister
vessel (Petrorig 2) was sold to Diamond Offshore for $490m. Petrorig
2 is the second deepwater driller Diamond Offshore has acquired from
the bankrupt units of Petromena ASA. Petrorig 3, a near identical
rig, is nearing completion at Jurong and is expected to be sold later
in the year. This rig is the collateral for the Petrorig 3 Pte Ltd
position held by the Company and its sale should crystallise the
recovery amount under that bond.
The Northern Offshore Ltd bonds were marked up during the month. As
the maturity of these bonds approaches, it appears the market has
become optimistic about the ability of the company to refinance
The largest gain on the month was recorded on the position in Nexus
Floating Production Ltd. The bond was marked up as the market
perceived improved recovery prospects for the harsh environment FPSO
under construction at Samsung Shipyard.
All market data in this report is sourced from Bloomberg and Pareto.
For further information, please contact:
Lynette Le Prevost
Kleinwort Benson (Channel Islands) Fund Services Limited
Director, Corporate Finance
020 7012 2000
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