Cabela’s Incorporated announced today that Cabela’s Credit Card Master Note Trust successfully completed the sale of $385 million of Asset-Backed Notes, Series 2013-I. The securitization transaction included the issuance of $327.25 million of Class A Notes, which accrue interest at a fixed rate of 2.71% per year.

The securitization transaction also included the issuance of three subordinated classes of notes in the aggregate principal amount of $57.75 million. World’s Foremost Bank, Cabela’s wholly owned subsidiary, purchased each of the subordinated classes of notes. Each class of notes issued in the securitization transaction has an expected life of approximately 10 years, with a legal maturity of approximately 13 years. This securitization transaction will help finance the growth of World’s Foremost Bank’s credit card portfolio.

“We are very pleased to announce this landmark 10-year term securitization,” said Tommy Millner, Cabela’s Chief Executive Officer. “Our first term securitization of the year was very well received and the execution of this transaction is a testament to the Cabela’s brand and demonstrates the continued quality and strength of the Cabela’s CLUB Visa portfolio. We are very pleased with this transaction as the low interest rate environment provides an excellent opportunity for the CLUB to lock in long-term liquidity at very favorable interest rates.”

This press release does not constitute an offer to sell or the solicitation of an offer to buy the notes and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The notes have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws.

Image courtesy Cabela’s

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One thought on “Cabela’s Inc. Announces the Closing of a 10-Year $385 Million Securitization

  1. Wow! I’ve been tossing and turning every night wondering about this. Did Cabela’s suddenly start thinking their core customer was a guy with a PhD in economics? I only have an English degree and a Master’s in poetry. Thanks for the update, guys!

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