Moody's ups OSI PD to Caa1/LD

Moody's Investors Service said it raised OSI Restaurant Partners, LLC's probability-of-default rating to Caa1/LD from Ca reflecting the closing of OSI's tender offer.

The company's $550 million senior unsecured notes due 2015 was upgraded to Caa3 (LGD5, 88%) from C (LGD5, 86%) to reflect the closing of the tender offer, the agency said.

OSI's Caa1 corporate family rating and B3 (LGD3, 37%) senior secured rating were confirmed. The company has an SGL-3 speculative grade liquidity rating.

The outlook is negative. The action concludes the review that began on Feb. 20.

Moody's said it views the tender offer as a distressed exchange and will remove the LD designation from the probability-of-default rating within three business days.

The confirmation considers the modest improvement in leverage and coverage metrics resulting from the completion of the company's recent tender offer, the agency noted.

The negative outlook considers high leverage with a debt-to-EBITDA ratio at about 8 times.

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