Cabela's 2008 Annual Report Download - page 88

83
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
The credit agreement includes a dividend provision limiting the amount that Cabela’s could pay to stockholders,
which at December 27, 2008, was not in excess of $106,238. The agreement also has a provision permitting
acceleration by the lenders in the event there is a change in control, as defined. In addition, the credit agreement
contains cross default provisions to other outstanding debt. In the event that we fail to comply with these covenants,
a default is triggered. In the event of default, all outstanding letters of credit and all principal and outstanding
interest would immediately become due and payable. We were in compliance with all financial debt covenants at
December 27, 2008.
We also have an unsecured revolving credit agreement for $15,000 Canadian dollars (“CAD”) in conjunction
with the acquisition of the net assets of an outdoors specialty retailer located in Winnipeg, Manitoba. Interest is
variable, computed at rates as defined in the agreement, plus a margin, and payable monthly. At the end of 2008 and
2007, the principal amount outstanding under this credit agreement totaled $6,465 and $7,447, respectively, with
interest rates of 3.50% and 5.60%, respectively.
Advances made pursuant to the $430,000 credit agreement and for our Canada operations are classified as
long-term debt. These agreements do not contain limitations regarding the pay downs of revolving loans advanced;
therefore, advances made pursuant to these agreements are considered long-term in nature.
We also have financing agreements that allow certain boat and all-terrain vehicle merchandise vendors to
give us extended payment terms. The vendors are responsible for all interest payments, with certain exceptions, for
the financing period and the financing company holds a security interest in the specific inventory held Cabela’s.
We record this merchandise in inventory. Our revolving credit facility limits this security interest to $50,000. The
extended payment terms to the vendor do not exceed one year. The outstanding liability, included in accounts payable,
was $5,162 and $7,988 at the end of 2008 and 2007, respectively.
12. SHORT-TERM BORROWINGS OF FINANCIAL SERVICES SUBSIDIARY
WFB has a variable funding facility credit agreement that is secured by a participation interest in the
transferor’s interest of the Cabela’s Master Credit Card Trust. The facility was entered into on June 21, 2007, and had
a commitment of $50,000, which was increased to $100,000 on November 29, 2007. On May 29, 2008, this credit
agreement was modified to a total commitment of $25,000 and was extended until May 28, 2009. At December 27,
2008, there were no amounts outstanding under the credit agreement and $100,000 was outstanding at December 29,
2007. The weighted average interest rate on the facility was 3.88% and 5.31%, respectively, for 2008 and 2007.
WFB has unsecured federal funds purchase agreements with two financial institutions. The maximum amount
that can be borrowed is $85,000. There were no amounts outstanding at December 27, 2008, or December 29, 2007.
During 2008 and 2007, the average balance outstanding was $25,790 and $10,386 with a weighted average rate of
2.90% and 5.12%, respectively.