Cabela's 2012 Annual Report Download - page 73

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63
investor protection feature relates to the availability and adequacy of cash flows in the securitized pool of loans to
meet contractual requirements, the insufficiency of which triggers early repayment of the securities. The Financial
Services segment refers to this as the “early amortization” feature. Investors are allocated cash flows derived
from activities related to the accounts comprising the securitized pool of loans, the amounts of which reflect
finance charges collected, certain fee assessments collected, allocations of interchange, and recoveries on charged
off accounts. These cash flows are considered to be restricted under the governing documents to pay interest to
investors, servicing fees, and to absorb the investor’s share of charge-offs occurring within the securitized pool
of loans. Any cash flows remaining in excess of these requirements are reported to investors as excess spread. An
excess spread of less than zero percent for a contractually specified period, generally a three-month average, would
trigger an early amortization event. Such an event could result in the Financial Services segment incurring losses
related to its retained interests. In addition, if the retained interest in the loans of the Financial Services segment
falls below the 5% minimum 20 day average and the Financial Services segment fails to add new accounts to the
securitized pool of loans, an early amortization event would be triggered. The investors have no recourse to WFB’s
other assets for failure of debtors to pay other than for breaches of certain customary representations, warranties,
and covenants. These representations, warranties, covenants, and the related indemnities do not protect the Trust or
third party investors against credit-related losses on the loans.
Another feature, which is applicable to the notes issued from the Trust, is one in which excess cash flows
generated by the transferred loans are held at the Trust for the benefit of the investors. This cash reserve account
funding is triggered when the three-month average excess spread rate of the Trust decreases to below 4.50% or
5.50% (depending on the series) with increasing funding requirements as excess spread levels decline below preset
levels or as contractually required by the governing documents. Similar to early amortization, this feature also is
designed to protect the investors’ interests from loss thus making the cash restricted. Upon scheduled maturity
or early amortization of a securitization, the Financial Services segment 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 29, 2012, were as follows:
Series Type
Tota l
Available
Capacity
Third Party
Investor
Available
Capacity
Third Party
Investor
Outstanding
Interest
Rate
Expected
Maturity
(Dollars in Thousands)
Series 2010-I Term $ 45,000 $ - $ - Fixed January 2015
Series 2010-I Term 255,000 255,000 255,000 Floating January 2015
Series 2010-II Term 165,000 127,500 127,500 Fixed September 2015
Series 2010-II Term 85,000 85,000 85,000 Floating September 2015
Series 2011-II Term 200,000 155,000 155,000 Fixed June 2016
Series 2011-II Term 100,000 100,000 100,000 Floating June 2016
Series 2011-IV Term 210,000 165,000 165,000 Fixed October 2016
Series 2011-IV Term 90,000 90,000 90,000 Floating October 2016
Series 2012-I Term 350,000 275,000 275,000 Fixed February 2017
Series 2012-I Term 150,000 150,000 150,000 Floating February 2017
Series 2012-II Term 375,000 300,000 300,000 Fixed June 2017
Series 2012-II Term 125,000 125,000 125,000 Floating June 2017
Total term 2,150,000 1,827,500 1,827,500
Series 2008-III Variable Funding 260,115 225,000 - Floating March 2015
Series 2011-I Variable Funding 352,941 300,000 - Floating March 2014
Series 2011-III Variable Funding 411,765 350,000 325,000 Floating September 2014
Total variable 1,024,821 875,000 325,000
Total available $ 3,174,821 $ 2,702,500 $ 2,152,500