Cabela’s Incorporated said that Cabela’s Credit Card Master Note Trust completed the sale of $300 million of Asset-Backed Notes, Series 2011-IV.
The securitization transaction included the issuance of $165 million of Class A-1 Notes, which accrue interest at a fixed rate of 1.90% per year, and $90 million of Class A-2 Notes, which accrue interest at a floating rate equal to one-month LIBOR plus 0.55% per year.
The securitization transaction also included the issuance of three subordinated classes of notes in the aggregate principal amount of $45 million. World's Foremost Bank, Cabela’s wholly-owned subsidiary, purchased each of the subordinated classes of notes. Each class of notes issued in the securitization transaction has an expected life of approximately five years, with a legal maturity of approximately eight years.
This securitization transaction will be used to refinance asset-backed notes that matured during 2011 and will help finance the growth of World’s Foremost Bank’s credit card portfolio.
“We are proud to complete our second term securitization during 2011, and the execution of this transaction speaks highly about the quality of the Cabela’s CLUB Visa portfolio,” said Joe Friebe, president and CEO of World’s Foremost Bank. “Despite the recent volatility in the credit markets, we were able to price the transaction at more favorable rates than the prior securitization we completed in June. In addition, based on investor demand for our notes, we were able to upsize the transaction by $50 million. We are extremely pleased with the outcome of this transaction.”