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 2011 is now available on the Company's website (www.cqsrigfinance.com)
and includes information on the top ten investments and outstanding borrowings.
Credit and equity markets moved higher in January continuing the strong
performance seen in 2010 and leading the S&P 500 Index to a further 2% rise over
the month. The price of WTI crude was volatile due to concerns over unrest in
the Middle East, but started and ended the month around the same level of $92
per barrel. The Company's final NAV per share closed up 0.46% at 28.38 pence
against 28.25 pence at the end of the prior month. In the portfolio losses were
seen on the Petromena 10.85% position which were offset by gains on the Rubicon
Offshore bonds although there was no specific news flow on either of the names.
The Sevan 2013 bonds were also marked up following the company's recent capital
The wave of new-build rig orders continued in January with Aker Drilling, Noble
Corp and Atwood Oceanics among others announcing firm orders or Letters of
Intent during the month. Aker Drilling already has two UDW vessels on contract
with Statoil and Det Norske and has ordered two additional drill-ships from the
well respected Daewoo shipyard in South Korea. The total project cost for each
vessel is approximately $600m. In connection with this announcement a new Aker
Drilling bond was issued. The five year NOK1.5bn bond was issued with a fixed
11% or a Nibor +700bp interest rate and is callable from May 2013 at a premium
price of 104.5. The company subscribed for and was allocated a small amount of
the new bond at issue.
There was positive news on the Company's position in Remedial Cayman as
bondholders approved the sale of Remedial's second jack-up unit for up to $87.5m
to Ocean Discoverer Pte, an indirect subsidiary of CIMC Raffles Offshore.
Subject to completion and conditions precedent, the purchase amount will be
settled by an initial deposit of $15m with the balance to be paid in six months.
For further information, please contact:
Lynette Le Prevost
Kleinwort Benson (Channel Islands) Fund Services Limited
Director, Corporate Finance
020 7012 2000
All market data sourced from Bloomberg
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Source: CQS Rig Finance Fund Ltd via Thomson Reuters ONE