Cabela's Inc collects $53mn from retirement of those bonds
01 Jun '06
2 min read
Cabela's Incorporated, the World's Foremost Outfitter of hunting, fishing, and outdoor gear, announced the refinancing of a portion of its economic development bonds related to the Company's Wheeling, West Virginia location.
As a result, the Company has received roughly $53 million dollars from the retirement of certain of those bonds.
Cabela's uses a multi-channel retailing model to offer the widest and most distinctive selection of high quality outdoor products in the outdoor recreation market. An important part of our multi-channel strategy is our destination retail stores.
These exciting destination retail stores are tourist destinations that introduce new customers to our brand and reinforce our outdoor lifestyle image with existing customers.
Due to their tourist destination attributes, part of our strategy is to negotiate economic development arrangements with local and state governments in connection with the development of our destination retail stores.
Frequently, these economic development arrangements result in Cabela's owning economic development bonds which represent the present value of the future taxes generated by our store or a district around our store. Monetizing these economic development bonds will enhance the individual store return as well as provide cash for future store locations.
Cabela's views the monetization of the economic development bonds in Wheeling as an important validation of our strategy. It proves that Cabela's can monetize these bonds for their carrying value and recycle this cash into future store locations.
marketing@alchempro.com
