Cabela's 2007 Annual Report Download - page 76

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70
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
On June 15, 2007, we issued $60,000 of 6.08% senior unsecured notes pursuant to a supplement to our
February 2006 debt issuance of $215,000. The notes mature on June 15, 2017, with interest on the notes payable semi-
annually. These notes contain the same default provisions and covenants as those pertaining to the February 2006 debt
issuance, including limitations on indebtedness and financial covenants relating to net worth and fixed charges.
Certain of the long-term debt agreements contain various covenants and restrictions such as the maintenance of
minimum debt coverage, net worth, and financial ratios. The significant financial ratios and net worth requirements
in the long-term debt agreements are 1) a limitation of funded debt to be less than 60% of consolidated total
capitalization; 2) cash flow fixed charge coverage ratio, as defined, of no less than 2.00 to 1.00 as of the last day of
the any quarter; and 3) a minimum consolidated adjusted net worth (as defined).
In addition, the debt contains cross default provisions to other outstanding credit facilities. In the event that we
failed to comply with these covenants and the failure to comply would go beyond 30 days, a default would trigger
and all principal and outstanding interest would immediately be due and payable. At December 29, 2007, we were in
compliance with all financial covenants under credit agreements and unsecured notes.
At the end of 2007 and 2006, the total carrying amount of long-term debt was $403,385 and $311,382,
respectively, with an estimated fair value of $387,743 and $315,979, respectively.
We have a lease agreement for our distribution facility in Wheeling, West Virginia. The lease term is through
June 2036. The monthly installments are $83 with the lease contains a bargain purchase option at the end of the lease
term. We are accounting for this lease as a capital lease and have recorded the additional leased asset at the present
value of the future minimum lease payments using a 5.9% implicit rate. The additional leased asset was recorded at
$5,649 and is being amortized on a straight-line basis over 30 years.
Aggregate expected maturities of long-term debt and scheduled capital lease payments for the years shown are
as follows:
Scheduled Capital
Lease Payments
Long-Term Debt
Maturities
2008 ................................................. $ 1,003 $ 26,547
2009 ................................................. 1,092 26,376
2010 .................................................. 1,000 7,990
2011 .................................................. 1,000 494
2012 .................................................. 1,000 51,096
Thereafter ............................................. 23,500 276,943
28,595 389,446
Capital lease amount representing interest. . . . . . . . . . . . . . . . . . . . (14,656)
Present value of net scheduled lease payments . . . . . . . . . . . . . . . . $ 13,939 13,939
Total long-term debt and capital leases ................... $403,385