Cabela's 2009 Annual Report Download - page 100

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
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 the end of December 2009 or 2008. During 2009 and 2008,
the average balance outstanding was $151 and $25,790 with a weighted average rate of 0.22% and 2.90%, respectively.
12. LONG-TERM DEBT AND CAPITAL LEASES
Long-term debt, including revolving credit facilities and capital leases, consisted of the following at the
years ended:
2009 2008
Unsecured revolving credit facility for $350,000 expiring June 30, 2012 with
interest at 1.96% at January 2, 2010 $ - $ 20,000
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 57,000
Unsecured revolving credit facility for $15,000 CAD expiring June 30, 2010, with
interest at 2.25% at January 2, 2010 2,902 6,465
Capital lease obligations payable through 2036 13,377 13,665
Other long-term debt - 7,901
Total debt 348,279 380,031
Less current portion of debt (3,101)(695)
Long-term debt, less current maturities $ 345,178 $379,336
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 10 for information on the covenants and restrictions contained in
our $350 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 January 2, 2010, we were in compliance with
all financial covenants under our credit agreements and unsecured notes.
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 and 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.