Statement 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 March 2012 is now available on the Company's website (www.cqsrigfinance.com) and includes further information on the top ten investments and outstanding borrowings.
March proved to be a month of consolidation after the significant rally of the prior months. Despite the Greek restructuring, concerns remained around European peripheral debt as investor focus started to turn towards the Spanish and Italian government balance sheets. The S&P 500 finished up 3.1%, the EuroStoxx finished down 1.4% and the Merrill Lynch High Yield Index (ex financial) closed up 1.0%. The price of Brent Crude rose 3.5% to reach a year high of $125.81 per barrel, before dropping back to end the month largely unchanged.
The Company's shares went ex-dividend on 14 March and thereafter traded without the right to receive the 0.60 pence dividend which was paid on 11 April 2012. After accounting for this, the Company's NAV per share rose 1.2% during the month to 33.44p taking the quarterly return to 4.5%.
There were profits across a number of strategies, in particular Troll Drilling & Services and Rubicon Offshore. In its first quarter 2012 report, Troll Drilling announced that the company has successfully signed a one year firm contract and up to one year options with BP UK for the vessel 'Troll Solution' from the second quarter 2012. 'Troll Solution' is a new purpose built self-propelled jack-up service unit for water depth up to 106 metres. The rig is currently in Singapore, being modified to the contractor's requirements and prepared for shipping to the North Sea. Arrival at the location on BP's UK Southern Fields is scheduled to take place in June 2012. The Company owns the 1st lien 13.75% 2016 bonds issued by Troll Drilling which were marked up 10 points during the month. The Rubicon bonds were also marked up following the market's expectation of completion of the upgrade works to the vessel 'Rubicon Intrepid' and the subsequent return to production on the Galoc field offshore Philippines. In addition, cash was received into the Company during the month following bond maturities as DDI Holding AS redeemed two of its outstanding bonds at par, along with accrued interest on the due date of 15 March 2012.
There was a new deal during the month as OSX Brazil SA issued a 1st lien secured $500m 9.25% 3-year bond. The bonds are callable from June 2013 at a price of 103 and the security package includes a 1st lien mortgage over the FPSO 'OSX3', currently being constructed at Jurong shipyard in Singapore. The vessel has a long-term charter with sister company OGX Petroleo e Gas Participacoes SA, the largest independent exploration and production company in Latin America with a market cap of approximately $27bn as at March 2012. OSX and OGX are both portfolio companies of the EBX Group, owned by the Brazilian entrepreneur Eike Batista. The Company subscribed for and was allocated an amount of the new issue.
For further information, please contact:
Kleinwort Benson (Channel Islands) Fund Services Limited
01481 710 607
Alastair Moreton/Hannah Young
NOMAD and Broker
Westhouse Securities Limited
020 7601 6118
All market data sourced from Bloomberg unless otherwise stated.
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Source: CQS Rig Finance Fund Ltd via Thomson Reuters ONE