Hunting and fishing equipment retailer Cabela’s has finalized the tranche sizes of an upsized $1 billion securitization of private-label credit card receivables.
In a filing Friday with the Securities and Exchange Commission, Cabela's Master Credit Card Trust Series 2016-1 disclosed that a $570 million tranche of fixed-rate class A-1 notes was assigned a 1.78% coupon, and a $280 million tranche of floating-rate class A-2 notes were priced to yield t 85 basis points over one-month Libor. The class A-1 notes priced at 99.98 of face value, while the A-2 notes priced at par, according to the prospectus.
Both tranches of class A notes were triple-A rated by DBRS, Fitch Ratings and Standard & Poor’s.
The trust also issued $80 million in class B notes, $42.5 million in class C notes and $27.5 million in class D notes. Only the Class A notes are being publicly offered, with the B, C and D notes being retained by the sponsor.
According to Fitch, the class A notes are supported by 15% credit enhancement as well as a capital cost allowance that will initially be unfunded.
The loans were originated by Cabela’s subsidiary bank, WFB Funding.
Wells Fargo Securities and RBC Capital Markets were co-leads on the transaction. The co-manager was Bank of America Merrill Lynch.
Earlier in the week, Cabela’s filed a registration statement for the sale, where it disclosed plans that the company was also considering either putting itself up for sale or selling its credit-card business through WFB.
The total amount of loans in Cabela’s Credit Card Master Note Trust is $4.86 billion, covering more than 3.1 million accounts.