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 May 2012 is now available on the Company's website (www.cqsrigfinance.com) and includes further information on the top ten investments and outstanding borrowings.
There were two important elections for the Eurozone during the month. In France, socialist Francois Hollande was elected President of the Republic and in Greece, no party was able to form a government. As a result, the selloff in European markets seen in April continued throughout May leading the EuroStoxx index to fall over 8%. The price of Brent Crude also slumped significantly by 15% to $101 per barrel and the Merrill Lynch High Yield Index (ex financial) fell 1.8%. The Company's NAV per share proved resilient against this backdrop falling 0.35% to 33.73p. Most positions were marked down slightly, reflecting the weakness of the wider markets but losses were partially offset by carry.
Songa Offshore SE ("Songa") announced a new NOK750m 3 year bond issue. The bond pays a coupon of Nibor+7.75% and is unsecured. The Company elected not to participate in this investment opportunity given the weak markets and the Company's existing exposure to the other bonds issued by Songa which pay coupons of Nibor +12% and Nibor +10%. We will continue to monitor the bond in the secondary market for an appropriate entry point.
There was limited portfolio news during the month. Ocean Rig UDW Inc. ("Ocean Rig") announced that it has signed definitive documentation for its ultra deepwater drillship "Ocean Rig Olympia", with Total E&P Angola. The contract is for a three-year period for drilling offshore West Africa, with an estimated backlog of approximately $652m. The contract is expected to commence in direct continuation of the Ocean Rig Olympia's existing contract in West Africa. The customer has the option to extend the contract for two periods of one year each, with the first option exercisable within one year from the commencement date under the drilling contract, and the second option exercisable within one year after the date of exercise of the first option. This increase in firm backlog of this magnitude is positive for the 9.5% 2016 bonds issued by Ocean Rig which the Company owns.
Given the volatility of the markets and the significant drop in the oil price, the Company has retained cash resources at its disposal to take advantage of opportunities as and when they arise.
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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(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: CQS Rig Finance Fund Ltd via Thomson Reuters ONE