DBRS Upgrades Three Classes of BAMLL-DB 2012-OSI Trust

DBRS Inc. (DBRS) has today upgraded the ratings of BAMLL-DB 2012 OSI Trust, Commercial Mortgage Pass-Through Certificates, Series 2012-OSI, as follows:

-- Class B to AAA (sf) from AA (sf)
-- Class C to AAA (sf) from A (sf)
-- Class D to AAA (sf) from BBB (sf)

Additionally, the ratings on the following classes were confirmed as follows:

-- Class A-1 at AAA (sf)
-- Class A-2-FX at AAA (sf)

All trends are Stable. DBRS has also discontinued the rating of Class A-2-FL as the class has been fully repaid.

The rating upgrades reflect the full defeasance of the transaction, which occurred in February 2016. The collateral consists of a $242.4 million first mortgage loan formerly secured by 257 full-service restaurants located in 34 states subject to one Master Lease, guaranteed by OSI Restaurant Partners, LLC (OSI). With the February 2016 remittance, the borrower, New Private Restaurant Properties, LLC, fully defeased the fixed-rate component of the collateral. In addition, the floating-rate component of the first mortgage, which had an outstanding balance of $43.5 million, was prepaid in full as was the $170.3 million of mezzanine debt held outside the trust. Since issuance in March 2012, the first mortgage loan has amortized 25.4%.

With the May 2016 remittance, the $97.16 interest shortfall, which had been outstanding to Class D since March 2014, was repaid. The shortfall was originally caused by a one-time trust expense attributed to an attorney fee; however, the Trustee decided to reverse the invoice applied to the trust, thereby repaying the shortfall.

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

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are North American CMBS Rating Methodology (March 2016) and CMBS North American Surveillance (December 2015), which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.