DBRS Assigns Provisional Ratings to BAMLL-DB 2012-OSI Trust

DBRS has today assigned provisional ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2012-OSI to be issued by BAMLL-DB 2012-OSI Trust. The trends are Stable.

– Class A-1 at AAA (sf)
– Class A-2-FX at AAA (sf)
– Class A-2-FL at AAA (sf)
– Class B at AA (sf)
– Class C at A (sf)
– Class D at BBB (sf)

The transaction collateral consists of a $324.8 million first mortgage secured by 261 full service restaurants that are subject to one Master Lease. The Master Lessee is Private Restaurant Master Lessee, LLC and the Master Lease is guaranteed by OSI Restaurant Partners, LLC (OSI) an owner/operator of full service chain restaurants. The Master Lease will be amended and restated from the 2007 lease; it will be newly executed and coincide with the issuance of this transaction. The Master Lease is subject to a 15-year term and includes 10% rental rate increases in year five and year ten of the lease.

OSI is headquartered in Tampa and was founded in 1988. The portfolio of brands consists of Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar and Roy’s Hawaiian Fusion. OSI competes in the casual-dining full-service restaurant segment. The company operates in 49 states and has international exposure with Outback Steakhouse restaurants open in 24 countries. The collateral for this transaction consists of a sample of all brands, although it is largely made up of Outback Steakhouse and Carrabba’s Italian Grill. There are also ten assets tenanted by brands not owned or operated by OSI.

The DBRS analysis considered both a stabilized traditional view of the real estate reflective of a high DBRS Term DSCR of 2.07 times (x) and a strong DBRS Refi DSCR of 1.59 times (x), that does not factor in the 10% rental increase that occurs in year five or year ten of the lease. DBRS also looked at a stress scenario that considers the properties Go Dark, or cease operating given a default under the Master Lease. Under the worst-case stress, the DBRS Go Dark analysis would cover the first mortgage financing at a one-to-one ratio.

The ratings assigned to the Certificates by DBRS are based exclusively on the credit provided by the transaction structure and underlying trust assets. All classes will be subject to ongoing surveillance which could result in upgrades or downgrades by DBRS after the date of issuance.

Finalization of ratings is contingent upon receipt of final documents conforming to information already received.

Notes:
All figures are in U.S. dollars unless otherwise noted.

All classes are privately placed pursuant to Rule 144a.

The applicable methodology is CMBS Rating Methodology, which can be found on our website under Methodologies.