Songa Drilling Moody's: Lowers probability of default rating (PDR) to Ca-PD from Caa1-PD; affirmed the Caa1; revises outlook to negative - The rating actions follow the company's announcement of a proposed debt refinancing and restructuring, with the issuance of up to $425 million in new capital, in the form of up to $275 million in new equity and a $150 million convertible bond. The capital raise is dependent on a number of conditions, including the extension of the existing bank facility and unsecured bond maturities, reductions in the bond interest rates and the bank amortisation payments, and waivers on certain maintenance covenants, and the company has already received the required pre-acceptance from two-thirds of the bond holders that is necessary. Upon successful completion of the restructuring -- expected around the end of December 2013 - Moody's expects to review the ratings and assign the LD suffix to the PDR. - The downgrade of the PDR to Ca-PD reflects Moody's view that under its definition of default, Songa's recapitalisation including maturity extensions and interest rate reductions, will constitute a default within the company's group structure. Moody's notes, however, that this recapitalisation will not adversely affect Songa's CFR as, at maturity, the company still intends to redeem all debt at par and the 2016 bonds at 103.5%. - The negative outlook reflects Moody's view that, under its rating definitions, a default will occur as a result of the proposed recapitalisation, maturity extensions and interest rate and payment profile amendments.