Cabela's 2011 Annual Report Download - page 98

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
On June 29, 2011, and October 27, 2011, the Trust sold $300,000 of asset-backed notes, Series 2011-II and
Series 2011-IV, respectively. Each Series included the issuance of $255,000 of Class A notes and three subordinated
classes of notes in the aggregate principal amount of $45,000. WFB retained each of the subordinated classes of
notes which were eliminated in the preparation of the consolidated financial statements. Each class of notes issued
in these securitization transactions has an expected life of approximately five years and a contractual maturity of
approximately eight years. These securitization transactions were used to refinance asset-backed notes issued by
the Trust that matured in 2011 and to fund growth in restricted credit card loans.
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 December 31, 2011, or January 1,
2011. During 2011 and 2010, the daily average balance outstanding was $90 and $649 with a weighted average rate
of 0.75% and 0.83%, respectively.
13. REVOLVING CREDIT FACILITIES
On November 2, 2011, we entered into a new credit agreement providing for a $415,000 revolving credit
facility that replaced our $350,000 credit facility set to expire June 30, 2012. The unsecured $415,000 revolving
credit facility permits the issuance of letters of credit up to $100,000 and swing line loans up to $20,000. This
credit facility may be increased to $500,000 subject to certain terms and conditions. The term of the credit facility
expires on November 2, 2016.
There were no amounts outstanding at December 31, 2011, and January 1, 2011, under our credit agreements.
During 2011 and 2010, the daily average principal balance outstanding on the lines of credit was $82,495 and
$30,256, respectively, and the weighted average interest rate was 1.21% and 1.39%, respectively. Letters of credit
and standby letters of credit totaling $14,692 and $17,579, respectively, were outstanding at the end of 2011 and
2010. The daily average outstanding amount of total letters of credit during 2011 and 2010 was $11,578 and
$17,784, respectively.
During the term of the facility, the Company is required to pay a quarterly commitment fee, which ranges
from 0.15% to 0.30% of the average daily unused principal balance on the line of credit. Interest on advances
on this credit facility is equal to the alternate base rate, as defined, plus the applicable margin, as defined. The
applicable margin is the percentage rate that is applicable at such time with respect to advances as set forth in the
pricing schedule, a stratified interest rate schedule based on the Company’s leverage ratio, as defined. The alternate
base rate is equal to the highest of:
• the lead lender’s prime rate,
• the sum of the federal funds rate in effect for the day plus one-half of one percent, and
• the Eurocurrency rate, as defined, plus 1.50%.
The credit agreement requires that Cabela’s comply with certain financial and other customary
covenants, including:
• a fixed charge coverage ratio (as defined) of no less than 2.00 to 1 as of the last day of any fiscal quarter
for the most recently ended four fiscal quarters (as defined);
• a leverage ratio (as defined) of no more than 3.00 to 1 as of the last day of any fiscal quarter; and
• a minimum consolidated net worth standard (as defined).
In addition, our unsecured senior notes contain various covenants and restrictions that are usual and
customary for transactions of this type. Also, the debt agreements contain cross default provisions to other
outstanding credit facilities. In the event that we failed to comply with these covenants, a default would trigger
and all principal and outstanding interest would immediately be due and payable. At December 31, 2011, and