Cabela's 2014 Annual Report Download - page 100

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90
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
The Company also has an unsecured $20,000 Canadian (“CAD”) revolving credit facility for its operations in
Canada. Borrowings are payable on demand with interest payable monthly. This credit facility permits the issuance
of letters of credit up to $10,000 CAD in the aggregate, which reduces the overall available credit limit. There were
no amounts outstanding at December 27, 2014, or December 28, 2013.
Advances made pursuant to the $775,000 credit agreement are classified as long-term debt. This agreement
does not contain requirements regarding the pay down of revolving loans advanced; therefore, advances made prior
to June 18, 2018, pursuant to this agreement are considered long-term in nature.
13. LONG-TERM DEBT AND CAPITAL LEASES
Long-term debt and capital leases consisted of the following at the years ended:
2014 2013
Unsecured revolving credit facility $ 180,000 $ 2,932
Unsecured notes due 2016 with interest at 5.99% 215,000 215,000
Unsecured senior notes due 2017 with interest at 6.08% 60,000 60,000
Unsecured senior notes due 2015-2018 with interest at 7.20% 32,571 40,714
Capital lease obligations payable through 2036 12,144 12,419
Total debt 499,715 331,065
Less current portion of debt (8,434) (8,418)
Long-term debt, less current maturities $ 491,281 $ 322,647
Certain of the long-term debt agreements 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 2.0 to 1 as of
the last day of any quarter; and 3) a minimum consolidated adjusted net worth, as defined.
In addition, the debt agreements contain cross default provisions to our outstanding credit facilities. In
the event that the Company failed to comply with these covenants, a default would trigger and all principal and
outstanding interest would immediately be due and payable. At December 27, 2014, and December 28, 2013, the
Company was in compliance with all financial covenants under the unsecured notes. We anticipate that we will
continue to be in compliance with all financial covenants under our unsecured notes through at least the next
12 months.
The Company has a lease agreement for our distribution facility in Wheeling, West Virginia. The lease term
is through June 2036. The monthly installments are $83 and the lease contains a bargain purchase option at the
end of the lease term. We accounted for this lease as a capital lease and recorded the additional leased asset at the
present value of the future minimum lease payments using a 5.9% implicit rate. The additional leased asset was
recorded at $5,649 and is being amortized on a straight-line basis over 30 years.