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 April 2010 is now available on the Company's website and
includes information on the top ten investments and outstanding borrowings:
Equity and credit markets were relatively stable during April following the
strong rally from the previous month. Once again, WTI crude oil markets followed
this trend, starting and ending the month around USD 86 per barrel. In the
offshore oil & gas drilling sector, the major news during April related to the
oil leak in the Gulf of Mexico and we are monitoring the situation for any
potential impact on the portfolio.
In the deepwater drilling sector, Seadrill announced that it had received a
letter of intent from Statoil for a harsh environment jack-up drilling rig for
the Norwegian Continental Shelf. The letter of intent represents a five-year
contract with an estimated contract value of approximately USD650 million
(including a mobilization fee of USD24 million) and start-up is scheduled for
the third quarter 2011. Statoil has the option to extend the contract by one to
four years on the same terms and conditions. The rig is an advanced, ultra
large, harsh environment, high specification drilling unit specifically built
for Norwegian requirements and is similar to the rigs being built by Skeie
Drilling & Production ASA in which the company has invested. (source:
There were several pieces of news related to the Company's investments during
Skeie Drilling & Production ASA announced that its USD30m Equity Private
Placement was heavily oversubscribed. A first lien bond issue was subsequently
launched which raised a total gross amount of USD225 million. The net proceeds
from the offering shall, inter alia, be employed to finance the last yard
instalment for the company's first N-class jackup rig, currently under
construction at KFELS in Singapore. The bonds will carry a coupon rate of 12.0%
payable annually, and mature in 2017.
ODS Petrodata reported that acceptance testing would commence shortly on the
Sevan Driller rig ahead of its maiden contract offshore Brazil. The rig arrived
in Brazil in late March, following its mobilisation from China, and has been
going through customs clearance since then. Following acceptance testing, Sevan
Driller will undertake a six year firm charter with Petrobras offshore Brazil.
Operations are expected to commence in May.
Northern Offshore Ltd. announced that it had agreed a USD120m secured revolving
credit facility maturing in September 2011 with Royal Bank of Scotland Group
Plc, Nordea Bank Norge ASA and NIBC Bank N.V, subject to customary closing
conditions. This was positive news as the Company holds a position in the
Northern Offshore bonds which are due to mature in June 2010.
Norsk Tillitsman, the Norwegian trustee, announced that the bondholders in the
Petrorig III (NOK1.6bn) bond were to be paid a partial repayment. The amount
equated to approximately a 95% recovery for the bondholders. The company held a
position in this bond and proceeds were received in May.
Gains were recorded on the Skeie Drilling & Production ASA positions following
the above news, as well as on the position in Remedial Cyprus, although there
was no specific news.
All market data is sourced from Bloomberg.
For further information, please contact:
Lynette Le Prevost
Kleinwort Benson (Channel Islands) Fund Services Limited
Tel : 01481 727111
Director, Corporate Finance
Tel: 020 7012 2000