CQS Rig Finance Fund Ltd : 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 January 2013 is now available on the Company's website (www.cqsrigfinance.com) and includes further information on the top ten investments and outstanding borrowings. Global markets were buoyant in January. The last-minute agreement to tackle the US fiscal cliff prompted a relief rally across world markets, however postponed decisions on spending cuts and the debt ceiling may add to volatility in the near-to-medium term. While economic data emanating from Europe remains weak, the region's equity and credit markets were boosted by hopes of a stabilising Eurozone economy and less onerous banking liquidity requirements. In Asia, the re-acceleration of growth in China and the Bank of Japan's extension of its asset purchase programme to achieve a new inflation target of 2% served to renew investor optimism. The MSCI World Index rose 5.4% over the month, while European equities, as measured by the MSCI Europe, gained 5.1% (both net in local currencies). After the strong rally in the last quarter of 2012, the Merrill Lynch High Yield Index (excluding financials) was more muted in January, ending flat on the month but Brent Crude oil continued its rise to close the month at $116 per barrel. Against this backdrop, the Company's NAV per share rose 1.4% in January from 35.53p to 36.04p There were large gains on the Company's Rubicon Offshore Holding bonds as the company announced a bigger-than-expected cash sweep of $11.3m, meaning that 8.5% of the outstanding bonds were redeemed at par. The remaining bonds were marked up 3 points to a price of 94% of par. Smaller gains were recorded across several other strategies. These were partially offset by losses on TrollDrilling & Services Ltd ("Troll") after the company issued an update on 2 January confirming, amongst other things, that the management of Troll had resigned. After the news, the Company sold half of its position above par value. The bonds have 1st Lien security over the Troll Solution offshore services vessel. The remaining exposure to Troll represents approximately 1% of NAV and bonds are indicated at approximately 102% of par. On 23 January Transocean Norway Drilling AS announced that it had called its 11% and floating rate senior unsecured callable bonds. The redemption price is equal to 104.5% of the principal amount plus accrued and unpaid interest.The Company held significant positions in both bonds and is due to receive cash on 6 March 2013. On 22 January Vantage Drilling Company ("Vantage") announced that it has received a conditional letter of award for its new-build drillship, the Tungsten Explorer, to work in West Africa. The award is for a period of up to four years commencing in mid-2014. This is positive news and the Company owns both straight bonds issued by Vantage. Despite the positive developments noted above, Arctic Securities, in its 'Drilling Market Update', noted some softness in the market. According to its report, ultra-deepwater (UDW) contract durations had come down recently "hence implying reduced contract backlogs for new-builds coming in the water. This is negative for drillers with significant new-build capex requirements, in our view, as it reduces debt funding potential for takeout payments." At the same time, Arctic also noted that it had recently seen some (marginally) soft data points in the UDW market. All market data sourced from Bloomberg unless otherwise stated. For further information, please contact: Corporate Secretariat Kleinwort Benson (Channel Islands) Fund Services Limited 01481 710 607 Alastair Moreton, Darren Vickers NOMAD and Broker Westhouse Securities Limited 020 7601 6118 RIG Shareholder Report - January 2013 ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (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 HUG#1679402
CQS Rig Finance Fund Ltd : Statement re Monthly Shareholder Fact Sheet
Press spacebar to pause and continue. Press esc to stop.