Cabela's announces closing of $500 mn securitization
24 Jan '08
2 min read
Cabela's Incorporated, the World's Foremost Outfitter of hunting, fishing and outdoor gear, announced today that Cabela's Credit Card Master Note Trust successfully completed the sale of $500 million in Asset-Backed Notes, Series 2008-I.
The securitization transaction included the issuance of six classes of notes:
• $202,650,000 of Class A-1 Notes, which accrue interest at a fixed rate of 4.31% per year;
• $229,850,000 of Class A-2 Notes, which accrue interest at a floating rate equal to one-month LIBOR plus 0.85% per year;
• $29,000,000 of Class B-1 Notes, which accrue interest at a fixed rate of 5.24% per year;
• $6,000,000 of Class B-2 Notes, which accrue interest at a floating rate equal to one-month LIBOR plus 1.80% per year;
• $21,250,000 of Class C-2 Notes, which accrue interest at a floating rate equal to one-month LIBOR plus 2.75% per year; and
• $11,250,000 of Class D Notes, which accrue interest at a floating rate equal to one-month LIBOR plus 6.00% per year.
In connection with the securitization transaction, the note trust entered into an interest rate swap with a notional amount equal to the Class A-2 Note principal balance and a fixed interest rate of 4.322%. Each class of notes has an expected life of approximately three years, with a legal maturity of approximately six years.
This securitization refinances an existing $300 million securitization that matured January 2008 with a fixed interest rate of 3.933%, with the remainder funding continued growth of World's Foremost Bank's credit card portfolio.
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