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 November 2009 is now available on the Company's website and
includes information on the top ten investments and outstanding borrowings:
The price of WTI crude traded in a tight range during November starting and
ending the month around the $77 per barrel level. Equities also traded in a
fairly tight range and the ML Euro High Yield Index was broadly flat. In the
latter part of the month, volatility returned to markets as the news regarding
the problems in Dubai broke.
The FPSO market continued its revival during November. Five FPSO contract awards
have now been made over the last four months following a year without contracts.
This does not directly impact any of the Company’s holdings but demonstrates
increased willingness amongst oil companies to invest in field developments
again. Several of the awards are projects that have previously been postponed
and that now have been re-tendered.
The company’s portfolio recorded gains over the month across various positions
and there was significant news flow and cash receipts from some restructuring
situations. The two most significant events are detailed below.
On 11 November, a Bondholders’ meeting was held which adopted a restructuring
proposal in relation to the sale of the Nexus 1 FPSO to Brazil’s EBX Group. The
proposal provided for a 50 cent recovery (versus the mark to market price of 45
as at 31st October) for the Bondholders which was subsequently received in cash
on 30 November. The company held a $16.1m position in this investment and thus
realised $8.1m in cash, enabling a reduction in its debt position.
Progress was made towards a capital raising at Marine Subsea AS. The company
announced that it intends to resolve its financing requirement through a
combination of measures, including new borrowings totalling USD 222 million to
be underwritten by Eksportfinans ASA and Standard Bank Plc as lenders with
guarantees from the Norwegian governmental agency GIEK. This new financing is
subject to the finalisation of legal documentation and a number of ‘conditions
precedent’ to closing. Further information can be found on the company website
All market data is sourced from Bloomberg and Pareto. Company information is
sourced from relevant company websites.
For further information, please contact:
Kleinwort Benson (Channel Islands) Fund Services Limited
Director, Corporate Finance
020 7012 2000