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 January 2010 is now available on the Company's website and
includes information on the top ten investments and outstanding borrowings:
Having started the year above the USD80 mark, WTI crude oil weakened during
January, ending the month around USD73 per Barrel. Generally, major equity and
credit markets began the year with a firm tone, however ended weaker after
measures to curb bank lending were announced in China and over concerns about
some European countries' fiscal positions.
In the drilling sector, the midwater segment has been the winner so far in 2010
with nine fixtures announced. Although many of these have been of a short term
nature and at modest rates, the activity bodes generally well for greater
utilisation. With increased utilisation, day-rate increases should follow and,
with no new-build rigs on the way, the midwater outlook is considered to be
improving. This may not impact any of the Company's positions directly but is
positive for the sector as a whole.
The Company's NAV during the month also benefited from rising bond prices in
response to positive news flow and increased market demand for bonds.
Following the completion of the refinancing of Marine Subsea AS, the bonds were
marked up significantly during January, albeit on limited trading volume. Gains
were also made on the holding in Sevan Drilling as the bonds traded up following
the successful completion of construction of the 6th generation UDW drilling
rig. The unit is currently in transit from Singapore to Brazil where it is
shortly due to commence a six years plus charter with Petrobras in the pre-salt
area of the Campos basin. The positions in Skeie Drilling, Production AS and
Rubicon Offshore were also marked up, although there was no significant news on
As indicated in last month's commentary, the FRN notes issued by Petroprod Ltd
were partially redeemed during January and cash was received by the Company.
The distribution by the Bondholders' Trustee equated to a c. 21.5% recovery on
this position which was slightly higher than expected. No further material
recovery is expected on this bond.
All market data is sourced from Bloomberg.
For further information, please contact:
Kleinwort Benson (Channel Islands) Fund Services Limited
Director, Corporate Finance
020 7012 2000