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 April 2012 is now available on the Company's website (www.cqsrigfinance.com) and includes further information on the top ten investments and outstanding borrowings.
The second quarter started with a sharp downward move in European equity markets. The potential new socialist government in France, the fall of the Dutch government, the downgrade of Spanish government debt by Standard & Poor's for the second time this year and fears of a slowdown in global growth weighed heavily on investors' minds. The EuroStoxx finished the month down 7% and the Merrill Lynch High Yield Index (ex financial) closed down 0.2%. The price of Brent Crude was relatively resilient, falling 2% to close the month at $119 per barrel. The Company's NAV per share rose 1.2% during the month to 33.85p.
There were profits across a number of strategies, in particular Songa Offshore. On 20 April, Songa announced a successful placement of shares raising $110m in new equity capital. In a press release, the company announced that "the Private Placement was significantly over subscribed" and that it had "allocated 35,200,000 new shares at a price of kr18.00 per share in the Private Placement to existing shareholders and new investors, with gross proceeds of kr633 million ($110 million)". This was seen by the markets as positive and the bonds were marked up 4 points. The Company took the opportunity to add to the position in the bonds which mature in 2016 and pay a coupon of Nibor+10%.
There was good news from Pacific Drilling as it announced that it had closed on two credit facilities totalling approximately $200m. As a result of securing these facilities, the company is able to release approximately $126m of cash collateral, bringing the company's total unrestricted cash balance to approximately $400m and its total cash balance to approximately $630m as of close of business 20 April. The Company owns the 8.25% 2015 bonds issued by Pacific and these were also marked up.
Further evidence was also seen of the strength in ultra deepwater day rates as Seadrill announced a new three-year contract offshore Africa. The total potential contract revenue, based on 97% utilisation, is estimated to be approximately $710m ($648k per day) and includes a performance bonus arrangement. Seadrill's total order backlog after this is approximately $13.3bn. The Company owns both the straight bonds and the convertible bonds issued by Seadrill.
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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information contained therein.
Source: CQS Rig Finance Fund Ltd via Thomson Reuters ONE