Cabela's 2011 Annual Report Download - page 70

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designed to protect the investors’ interests from loss thus making the cash restricted. Upon scheduled maturity or
early amortization of a securitization, WFB is required to remit principal payments received on the securitized
pool of loans to the Trust which are restricted for the repayment of the investors’ principal note.
The total amounts and maturities for our credit card securitizations as of December 31, 2011, were as follows:
Series Ty p e
Total
Available
Capacity
Third Party
Investor
Available
Capacity
Third Party
Investor
Outstanding
Interest
Rate
Expected
Maturity
(Dollars in Thousands)
Series 2009-I Ter m $ 75,000 $ - $ - Fixed March 2012
Series 2009-I Ter m 425,000 425,000 425,000 Floating March 2012
Series 2010-I Ter m 45,000 - - Fixed January 2015
Series 2010-I Ter m 255,000 255,000 255,000 Floating January 2015
Series 2010-II Ter m 165,000 127,500 127,500 Fixed September 2015
Series 2010-II Ter m 85,000 85,000 85,000 Floating September 2015
Series 2011-II Ter m 200,000 155,000 155,000 Fixed June 2016
Series 2011-II Ter m 100,000 100,000 100,000 Floating June 2016
Series 2011-IV Ter m 210,000 165,000 165,000 Fixed October 2016
Series 2011-IV Ter m 90,000 90,000 90,000 Floating October 2016
Total term 1,650,000 1,402,500 1,402,500
Series 2008-III Variable Funding 260,115 225,000 - Floating March 2014
Series 2011-I Variable Funding 352,941 300,000 120,000 Floating March 2014
Series 2011-III Variable Funding 411,765 350,000 340,000 Floating September 2014
Total variable 1,024,821 875,000 460,000
Total available $ 2,674,821 $ 2,277,500 $ 1,862,500
We have been, and will continue to be, particularly reliant on funding from securitization transactions for
WFB. A failure to renew existing facilities or to add additional capacity on favorable terms as it becomes necessary
could increase our financing costs and potentially limit our ability to grow the business of WFB. Unfavorable
conditions in the asset-backed securities markets generally, including the unavailability of commercial bank
liquidity support or credit enhancements, could have a similar effect. During 2011, WFB issued $622 million in
certificates of deposit, renewed its $260 million variable funding facility for an additional three years, entered
into two new variable funding facilities for $353 million and $412 million that will mature in March 2014 and
September 2014, respectively, and completed two $300 million term securitizations that will mature in March 2014
and September 2014, respectively. In 2012, WFB intends to issue additional certificates of deposit and additional
term securitizations. We believe that these liquidity sources are sufficient to fund WFB’s foreseeable cash
requirements, including term debt and certificate of deposit maturities, and near-term growth plans.
Furthermore, WFB’s securitized credit card loans could experience poor performance, including increased
delinquencies and credit losses, lower payment rates, or a decrease in excess spreads below certain thresholds.
This could result in a downgrade or withdrawal of the ratings on the outstanding securities issued in WFB’s
securitization transactions, cause “early amortization” of these securities, or result in higher required credit
enhancement levels. Credit card loans performed within established guidelines and no events which could trigger
an “early amortization” occurred during the years ended December 31, 2011, and January 1, 2011.
Certificates of Deposit
WFB utilizes brokered and non-brokered certificates of deposit to partially finance its operating activities.
WFB issues certificates of deposit in a minimum amount of one hundred thousand dollars in various maturities.
At December 31, 2011, WFB had $982 million of certificates of deposit outstanding with maturities ranging from
January 2012 to December 2018 and with a weighted average effective annual fixed rate of 2.53%. This outstanding
balance compares to $513 million at January 1, 2011, with a weighted average effective annual fixed rate of 3.90%.