Cabela’s Inc. Announces Closing of $1 Billion Securitization
June 29 2016 - 4:15PM
Business Wire
Cabela’s Incorporated (NYSE: CAB) announced today that Cabela’s
Credit Card Master Note Trust successfully completed the sale of $1
billion of Asset-Backed Notes, Series 2016-I. The securitization
transaction included the issuance of $570 million of Class A-1
Notes, which accrue interest at a fixed rate of 1.78% per year, and
$280 million of Class A-2 Notes, which accrue interest at a
floating rate equal to one-month LIBOR plus 0.85% per year. The
securitization transaction also included the issuance of three
subordinated classes of notes in the aggregate principal amount of
$150 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 three years, with a legal maturity
of approximately six years. This securitization transaction will
help finance the growth of World’s Foremost Bank’s credit card
portfolio.
“We are pleased to announce the completion of our Series 2016-I
term securitization, which had very strong investor demand for the
offered notes,” said Tommy Millner, Cabela’s Chief Executive
Officer. “There has been some recent volatility in the market so we
are pleased with the mix of fixed and floating rate funding
achieved in this transaction. The execution of this transaction is
a testament to the Cabela’s® brand and signifies the continued
strength of the Cabela’s CLUB® Visa portfolio.”
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.
About Cabela’s Incorporated
Cabela's Incorporated, headquartered in Sidney, Nebraska, is a
leading specialty retailer, and the world's largest direct
marketer, of hunting, fishing, camping and related outdoor
merchandise. Since the Company's founding in 1961, Cabela's® has
grown to become one of the most well-known outdoor recreation
brands in the world, and has long been recognized as the World's
Foremost Outfitter®. Through Cabela's growing number of retail
stores and its well-established direct business, it offers a wide
and distinctive selection of high-quality outdoor products at
competitive prices while providing superior customer service.
Cabela's also issues the Cabela's CLUB® Visa credit card, which
serves as its primary customer loyalty rewards program. Cabela's
stock is traded on the New York Stock Exchange under the symbol
"CAB".
Caution Concerning Forward-Looking
Statements
Statements in this press release that are not historical or
current fact are “forward-looking statements” that are based on the
Company’s beliefs, assumptions, and expectations of future events,
taking into account the information currently available to the
Company. Words such as "expects," "intends," "anticipates,"
"believes," "estimates," "guides," "provides guidance," "provides
outlook" and other similar expressions or future or conditional
verbs such as "may," "will," "should," "would," "could," and
"might" are intended to identify such forward-looking statements.
Forward-looking statements involve risks and uncertainties that may
cause the Company’s actual results, performance, or financial
condition to differ materially from the expectations of future
results, performance, or financial condition that the Company
expresses or implies in any forward-looking statements. These risks
and uncertainties include, but are not limited to: the Company’s
exploration and evaluation of strategic alternatives may not result
in the successful identification or completion of a strategic
alternative that yields additional value for stockholders, and the
exploration and evaluation process may have an adverse impact on
the Company’s business; the state of the economy and the level of
discretionary consumer spending, including changes in consumer
preferences, demand for firearms and ammunition, and demographic
trends; adverse changes in the capital and credit markets or the
availability of capital and credit; the Company’s ability to
successfully execute its omni-channel strategy; increasing
competition in the outdoor sporting goods industry and for credit
card products and reward programs; the cost of the Company’s
products, including increases in fuel prices; the availability of
the Company’s products due to political or financial instability in
countries where the goods the Company sells are manufactured;
supply and delivery shortages or interruptions, and other
interruptions or disruptions to the Company’s systems, processes,
or controls, caused by system changes or other factors; increased
or adverse government regulations, including regulations relating
to firearms and ammunition; the Company’s ability to protect its
brand, intellectual property, and reputation; the Company’s ability
to prevent cybersecurity breaches and mitigate cybersecurity risks;
the outcome of litigation, administrative, and/or regulatory
matters (including the ongoing audits by tax authorities and
compliance examinations by the Federal Deposit Insurance
Corporation); the Company’s ability to manage credit, liquidity,
interest rate, operational, legal, regulatory capital, and
compliance risks; the Company’s ability to increase credit card
receivables while managing credit quality; the Company’s ability to
securitize its credit card receivables at acceptable rates or
access the deposits market at acceptable rates; the impact of
legislation, regulation, and supervisory regulatory actions in the
financial services industry; and other risks, relevant factors, and
uncertainties identified in the Company’s filings with the SEC
(including the information set forth in the “Risk Factors” section
of the Company’s Form 10-K for the fiscal year ended January 2,
2016, and Form 10-Q for the quarterly period ended April 2, 2016),
which filings are available at the Company’s website at
www.cabelas.com and the SEC’s website at www.sec.gov. Given the
risks and uncertainties surrounding forward-looking statements, you
should not place undue reliance on these statements. The Company’s
forward-looking statements speak only as of the date they are made.
Other than as required by law, the Company undertakes no obligation
to update or revise forward-looking statements, whether as a result
of new information, future events, or otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160629006369/en/
Investors:Cabela’s IncorporatedAndrew Weingardt,
308-255-7428orMedia:Cabela’s Incorporated308-255-1204
Cabelas (NYSE:CAB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cabelas (NYSE:CAB)
Historical Stock Chart
From Apr 2023 to Apr 2024