Moody's assigns OSI B2, loan Ba3, notes Caa1

Moody's Investors Service said it assigned a first-time B2 corporate family rating to OSI Restaurant Partners, Inc. along with Ba3 ratings on the proposed senior secured credit facilities, including a $150 million working capital revolving line of credit, $100 million pre-funded revolving line of credit for capital expenditures and a $1.08 billion term loan B.

In addition, Moody's said it assigned a Caa1 rating to OSI's $700 million guaranteed senior unsecured note offering.

At the same time, an SGL-2 speculative-grade liquidity rating was assigned, the agency added.

The outlook is stable.

Moody's added that the B2 corporate family rating reflects OSI's high financial leverage, modest coverage and marginal free cash flow generation, as well as the highly competitive environment within the casual dining segment of the restaurant industry which will likely persist over the intermediate term.

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