Cabela’s said Thursday it closed on an offering of private label credi card ABS.
The Credit Card Master Note Trust sold $385 million of Asset-Backed Notes, Series 2013-I.
The securitization transaction included the issuance of $327.25 million of Class A Notes, which accrue interest at a fixed rate of 2.71% per year. The notes are rated ‘A’ by Fitch Ratings.
The transaction also included three subordinated classes of notes in the aggregate principal amount of $57.75 million.
World's Foremost Bank, the hunting and fishing retailer’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 10 years, with a legal maturity of approximately 13 years.
Proceeds will be used to help finance the growth of World’s Foremost Bank’s credit card portfolio.
“We are very pleased to announce this landmark 10-year term securitization,” said Tommy Millner, Cabela’s chief executive, said in a press release. He said the deal allowed Cabela to lock in long-term liquidity at very favorable interest rates.
