Doc re. 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 2011 is now available on the Company's website (www.cqsrigfinance.com) and includes further information on the top ten investments and outstanding borrowings.
November was a volatile month for risky assets. The S&P 500 Index fell by over 7% by 25 November, only to rally back to end the month 0.5% lower. The price of Brent crude rose slightly and the Merrill Lynch High Yield Index (ex financial) closed down 4.5%. Once again, events in Europe dominated the headlines. France's AAA rating came into question, Portugal and Belgium were the subject of negative action by ratings agencies and perhaps most importantly Germany failed to attract sufficient bids at an auction of benchmark 10-year bunds. At the end of the month, optimism around European fiscal union, a loosening of monetary policy in China and a coordinated effort by central banks to improve dollar funding fuelled the rally.
The Company's NAV per share rose 1.4% from 32.06p to 32.51p. There were small positive moves across a number of strategies. In particular, following the cash distribution on the FPS Ocean bonds as reported in the October factsheet, the residual position was marked up by the brokers to reflect further potential recoveries. In addition, the PGS bonds were marked up following an announcement of a new $300m 7.375% 2018 bond. PGS stated that it expects to use the net proceeds of the offering for general corporate purposes and intends to repurchase or repay the outstanding principal amount of its existing convertible bonds on or before maturity with cash on hand, which may include the net proceeds received from this offering.
Following months without a new issue, two new deals came to market in November. Chloe Marine Corporation (Deepsea Metro II) placed a $150m 12% coupon bond due in 2016. The bonds are callable after two years at a price of 108. This is the second bond being raised by Deep Sea Metro Ltd, a joint venture between Metro Exploration Holding Corp. and Odjfell Drilling. The proceeds were used to part finance the delivery of a new sixth generation ultra deepwater drillship built at Hyundai Heavy Industries. The rig has been delivered and has been awarded a three-year contract by Petrobras.
Songa Offshore SE issued a NOK 1.4bn unsecured bond paying 6m Nibor + 10% and maturing in 2016. The bonds are callable after three years at a price of 108.
The company subscribed to and was allocated bonds in both of these new issues.
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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information contained therein.
Source: CQS Rig Finance Fund Ltd via Thomson Reuters ONE