Cabela's 2010 Annual Report Download - page 65

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55
The following table presents the borrowing activities of our merchandising business and WFB for the
years ended:
2010 2009
(In Thousands)
Borrowings on (repayment of) lines of credit and short-term debt, net $ (5,821) $ (25,901)
Secured borrowings of the Trust, net of repayments (289,000) -
Issuances (repayments) of long-term debt, net of repayments (225)(289)
Total $(295,046) $ (26,190)
The following table summarizes our availability under debt and credit facilities, excluding the facilities of
WFB, at the end of years:
2010 2009
(In Thousands)
Amounts available for borrowing under credit facilities (1) $ 365,000 $365,000
Principal amounts outstanding - -
Outstanding letters of credit and standby letters of credit (17,579)(11,394)
Remaining borrowing capacity, excluding WFB facilities $ 347,421 $353,606
(1) Consists of our revolving credit facility of $350 million and $15 million CAD from the credit facility for our
operations in Canada.
In addition, WFB has total borrowing availability of $85 million under its agreements to borrow federal
funds. At January 1, 2011, the entire $85 million of borrowing capacity was available to WFB.
Our $350 million unsecured credit agreement requires us to comply with certain financial and other
customary covenants, including 1) a fixed charge coverage ratio (as defined) of no less than 1.50 to 1.00 as of the
last day of any quarter; 2) a cash flow leverage ratio (as defined) of no more than 3.00 to 1.00 as of the last day of
any quarter; and 3) a minimum tangible net worth standard (as defined). In addition, our unsecured senior notes
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). Also, the debt agreements contain 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 1, 2011, we were in compliance with all financial covenants under our credit
agreements and unsecured notes. We anticipate that we will continue to be in compliance with all financial
covenants under our credit agreements and unsecured notes through the next 12 months.
Effective June 29, 2010, we entered into an amended and restated credit agreement for our operations in
Canada extending our $15 million CAD unsecured revolving credit facility through June 30, 2013. The credit
facility permits the issuance of up to $5 million CAD in letters of credit, which reduce the overall credit limit
available under the credit facility. Interest remains variable, is computed at rates which are defined in the
agreement plus a margin, and is payable monthly. All other terms of the credit agreement remained unchanged.