Cabela's 2010 Annual Report Download - page 99

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
As of January 1, 2011, Cabela’s was in compliance with these requirements with a fixed charge coverage ratio of
3.44 to 1, a cash flow leverage ratio of 1.40 to 1, and tangible net worth that was $426,999 in excess of the minimum.
The credit agreement includes a dividend provision limiting the amount that Cabela’s could pay to
stockholders, which at January 1, 2011, was not in excess of $131,997. 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 the Company fails 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. The Company was in compliance
with all financial debt covenants at January 1, 2011.
Effective June 29, 2010, the Company entered into an amended and restated credit agreement for the
Company’s operations in Canada extending its $15,000 Canadian dollars (“CAD”) unsecured revolving credit
facility through June 30, 2013. The credit facility permits the issuance of up to $5,000 CAD in letters of credit,
which reduce the overall credit limit available under the credit facility. Interest is variable, computed at rates as
defined in the agreement, plus a margin, and payable monthly. At the end of 2010 there were no principal amounts
outstanding. At the end of 2009, the principal amount outstanding totaled $2,902, with an interest rate of 2.25%.
Advances made pursuant to the $350,000 credit agreement are classified as long-term debt. This agreement
does not contain limitations regarding the pay downs of revolving loans advanced; therefore, advances made
pursuant to this agreement are considered long-term in nature.
The Company also has financing agreements that allow certain boat and all-terrain vehicle merchandise
vendors to give the Company 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 by the Company. Cabela’s 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 $537 and $3,510 at the end of 2010 and 2009, respectively.
14. LONG-TERM DEBT AND CAPITAL LEASES
Long-term debt, including revolving credit facilities and capital leases, consisted of the following at the years
ended:
2010 2009
Unsecured revolving credit facility for $350,000 expiring June 30, 2012, with
interest at 3.25% at January 1, 2011 $ - $ -
Unsecured notes payable due 2016 with interest payable semi-annually at 5.99% 215,000 215,000
Unsecured senior notes payable due 2017 with interest payable semi-annually at 6.08% 60,000 60,000
Unsecured senior notes due 2012-2018 with interest payable semi-annually at 7.20% 57,000 57,000
Unsecured revolving credit facility for $15,000 CAD expiring June 30, 2013, with
interest at 3.04% at January 1, 2011 - 2,902
Capital lease obligations payable through 2036 13,152 13,377
Total debt 345,152 348,279
Less current portion of debt (230)(3,101)
Long-term debt, less current maturities $ 344,922 $345,178