Cabela's 2008 Annual Report Download - page 89

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
13. LONG-TERM DEBT AND CAPITAL LEASES
Long-term debt, including revolving credit facilities and capital leases, consisted of the following at the years
ended:
2008 2007
Unsecured revolving credit facility for $430,000 expiring June 30, 2012 with
interest at 3.25% at December 27, 2008 $ 20,000 $50,576
Unsecured notes payable due 2016 with interest at 5.99% 215,000 215,000
Unsecured senior notes payable due 2017 with interest at 6.08% 60,000 60,000
Unsecured senior notes due 2012-2018 with interest at 7.20% 57,000 -
Unsecured revolving credit facility for $15,000 CAD expiring June 30, 2010, with
interest at 3.50% at December 27, 2008 6,465 7,447
Unsecured senior notes due 2009 with interest at 4.95% - 50,000
Capital lease obligations payable through 2036 13,665 13,939
Other long-term debt 7,901 6,423
Total debt 380,031 403,385
Less current portion of debt (695)(26,785)
Long-term debt, less current maturities $ 379,336 $376,600
On January 16, 2008, we issued $57,000 of 7.20% unsecured senior notes to institutional buyers. Scheduled
principal repayments of $8,143 are payable beginning January 16, 2012, and annually thereafter until their maturity
at January 16, 2018. Interest is payable semi-annually. We used the proceeds to pay down existing debt and for
general corporate purposes.
On June 15, 2007, we issued $60,000 of 6.08% unsecured senior 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 any quarter; and 3) a minimum consolidated adjusted net worth (as defined). See Note 11 for information on the
covenants and restrictions contained in our $430 million revolving credit facility.
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 27, 2008, we were in
compliance with all financial covenants under our credit agreements and unsecured notes.
At the end of 2008 and 2007, the total carrying amount of long-term debt was $380,031 and $403,385,
respectively, with an estimated fair value of $373,304 and $387,743, respectively.