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CQS Rig Finance Fund Ltd (RIG)

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Thursday 22 October, 2009

CQS Rig Finance Fund Ltd

Monthly Shareholder Fact Sheet - Sept 2009





    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:

www.cqsrigfinance.com

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
itself.

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
Secretary
Kleinwort Benson (Channel Islands) Fund Services Limited
01481 727111

Alastair Moreton
Director, Corporate Finance
Arbuthnot Securities
020 7012 2000

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