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
October 2011 is now available on the Company's website (www.cqsrigfinance.com)
and includes further information on the top ten investments and outstanding
The sell-off in risky assets witnessed in August and September was sharply
reversed in October based on signs of improvement in the US economy and
continued efforts by European leaders to stabilize the region's debt crisis.
There were conflicting stories throughout the month surrounding the ability of
Eurozone governments to resolve the troubles by recapitalising banks and
increasing the firepower of the European Financial Stability Facility (EFSF)
along with a voluntary partial write down of Greek sovereign debt. Despite the
lack of clarity around how this is to be achieved in practice, risk markets
surged with the S&P 500 Index ending the month 10.8% higher. Commodities also
rallied and the price of Brent Crude rose 9% to close the month at $110 per
barrel. During October, the Company's NAV per share rose 14% from 28.14p to
32.06p. This increase in the NAV per share includes recognition of the 0.55p
dividend paid on 7 November 2011, following the Company's shares trading ex-
dividend on 12 October 2011.
Most bonds in the portfolio were marked up during the month, in line with the
wider high-yield credit markets. The largest impact came from the sale of the
collateral underlying the FPS Ocean bonds which led to a positive NAV per share
impact of 3.94p including the refund of legal expenses. Cash was distributed to
bondholders on 28 October 2011. For further detail please refer to the Company's
announcement issued on 24 October 2011.
Ocean Rig UDW Inc. announced drilling contracts for three additional wells
offshore West Africa, with two independent oil operators based in the UK and the
USA respectively, for the semi-submersible rig 'Eirik Raude'. The total revenue
backlog, excluding mobilisation cost, to complete the three wells programme is
estimated at $96m for a period of approximately 175 days, which approximates to
$550k per day. This news is positive for the Company's position in the Ocean Rig
There was further potential investment news as Maersk Drilling announced plans
to order another eight high-specification drilling rigs by 2016, which would
increase its fleet to 30 rigs. The Maersk Drilling CEO said it has "an even more
profound belief that deepwater will grow tremendously" than it had in 2005 when
it ordered its first deepwater units (Upstream).
The bullish tone to the markets at the end of October provided a window for
companies in the sector to raise finance. PGS and Songa Offshore, among others,
announced intentions to issue new bonds in November.
For further information, please contact:
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