Cabela’s, the hunting, fishing and camping retailer, priced an upsized $350 million of securities backed by credit card receivables.
The deal, which was upsized from $291 million originally, included $100 million of Class A-1 Notes, rated ‘AAA’ by Standard & Poor’s, which accrue interest at a fixed rate of 2.17%, and $197.5 million of ‘AAA-‘ rated Class A-2 Notes, which accrue interest at a floating rate equal to one-month LIBOR plus 65 basis points.
All of the notes have an expected life of approximately five years and a legal maturity of approximately eight years.
There were also three subordinated classes of notes in the aggregate principal amount of $52.5 million that were purchased by World's Foremost Bank, Cabela’s wholly owned subsidiary.
“We are excited to announce the completion of our second term securitization during 2013, and we are very pleased with both the pricing and execution of this transaction,” said Tommy Millner, Cabela’s chief executive, said in a press release published late Monday. “Even with the recent volatility in interest rates, there was strong investor demand for the transaction, and we were able to upsize by $50 million.”
RBC Capital Markets and Merrill Lynch, Pierce, Fenner & Smith are lead underwriters on the deal.