Cabela's 2007 Annual Report Download - page 50

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44
The total amounts and maturities for our credit card securitizations as of December 29, 2007, were as follows:
Series Ty pe
Initial
Amount Interest Rate Expected Final Maturity
(Dollars in Thousands)
Series 2003-1 Te r m $ 300,000 (1) Floating (1) January 2008
Series 2004-I Ter m 75,000 Fixed March 2009
Series 2004-II Ter m 175,000 Floating March 2009
Series 2005-I Ter m 140,000 Fixed October 2010
Series 2005-I Ter m 110,000 Floating October 2010
Series 2006-III Ter m 250,000 Fixed October 2011
Series 2006-III Ter m 250,000 Floating October 2011
Series 2006-I Variable Funding 550,000 (2) Floating October 2008
(1) The trust entered into an agreement to convert the floating rate certificate into a fixed rate obligation. On
January 18, 2008, the trust completed a $500 million securitization (“Series 2008-I”). This securitization
refinanced the $300 million securitization that matured January 2008, with the remainder funding continued
growth of the bank’s credit card portfolio.
(2) Includes a temporary increase of $200 million that expires in March 2008.
We have been, and will continue to be, particularly reliant on funding from securitization transactions for our
Financial Services segment. A failure to renew existing facilities or to add additional capacity on favorable terms as it
becomes necessary could increase our financing costs and potentially limit our ability to grow our Financial Services
business. Unfavorable conditions in the asset-backed securities markets generally, including the unavailability of
commercial bank liquidity support or credit enhancements, such as financial guaranty insurance, could have a
similar effect.
Furthermore, poor performance of our securitized credit card loans, including increased delinquencies and
credit losses, lower payment rates, or a decrease in excess spreads below certain thresholds, could result in a
downgrade or withdrawal of the ratings on the outstanding securities issued in our securitization transactions, cause
early amortization of these securities, or result in higher required credit enhancement levels. This could jeopardize
our ability to complete other securitization transactions on acceptable terms, decrease our liquidity, and force us
to rely on other potentially more expensive funding sources, to the extent available, which would decrease our
profitability.
Certificates of Deposit
We utilize certificates of deposit to partially finance the operating activities of our bank. Our bank issues
certificates of deposit in a minimum amount of one hundred thousand dollars in various maturities. As of December
29, 2007, we had $161 million of certificates of deposit outstanding with maturities ranging from January 2008 to
April 2016 and with a weighted average effective annual fixed rate of 5.01%. Certificate of deposit borrowings are
subject to regulatory capital requirements.
Impact of Inflation
We do not believe that our operating results have been materially affected by inflation during the preceding
three years. We cannot assure, however, that our operating results will not be adversely affected by inflation in the
future.