Cabela's announces closing of $300 mn securitization
07 Jul '11
2 min read
Cabela's Incorporated announced that Cabela's Credit Card Master Note Trust successfully completed the sale of $300 million of Asset-Backed Notes, Series 2011-II.
The securitization transaction included the issuance of $155 million of Class A-1 Notes, which accrue interest at a fixed rate of 2.39% per year, and $100 million of Class A-2 Notes, which accrue interest at a floating rate equal to one-month LIBOR plus 0.60% per year.
The securitization transaction also included the issuance of three subordinated classes of notes in the aggregate principal amount of $45 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 five years, with a legal maturity of approximately eight years. This securitization transaction will help finance the growth of World's Foremost Bank's credit card portfolio.
"We completed this transaction, which was oversubscribed, at very favorable rates, which demonstrates that Cabela's CLUB Visa portfolio continues to be well received in the marketplace," said Joe Friebe, President and Chief Executive Officer of World's Foremost Bank.
"We are proud to complete our first term securitization during 2011 and are extremely pleased with both the execution and pricing of this transaction."
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