Cabela’s Incorporated plans to sell $255 million private label credit card ABS deal via its Credit Card Master Note Trust, Series 2013-I.
Fitch Ratings has assigned preliminary rating to the class A notes. The ratings agency also assigned an ‘A+’ rating to the $24 million, class B notes, ‘BBB+’ to the $12.7 million class C notes; and ‘BB’ rating to the $8.25 million class D notes. Only the class A notes will be via the Rule 144A market, while class B, C, and D notes will most likely be retained at issuance.
The initial credit enhancement totaling 15.0% support the class A notes is derived from 8.0% subordination of class B notes, 4.25% subordination of class C notes, 2.75% subordination of class D notes, and an unfunded cash collateral account
The trust’s primary asset is the series 2004-1 certificate, a collateral certificate backed by credit card receivables originating in VISA-branded accounts, underwritten and serviced by World’s Foremost Bank (WFB), a wholly owned subsidiary of Cabela’s Inc. Payments on the series 2004-1 certificate will be applied to make payments to series 2013-I notes, according to the Fitch presale report.
Cabela’s, Inc. headquartered in Sidney, NE; is a national retailer in sporting goods, clothing, and equipment, with revenues of $3.1 billion in 2012. WFB is a Nebraska state banking corporation and a limited-purpose credit card bank. WFB is a wholly owned subsidiary of Cabela’s. The bank provides customer service, risk management, and payment processing exclusively for Cabela’s cardholders. It owns and originates the credit card accounts and services the receivables.