Cabela's Incorporated is refinancing of the remainder of its economic development bonds related to the Company's Wheeling, West Virginia location. As a result, the Company received roughly $43 million from the retirement of these bonds.
Due to the stores' economy-boosting tourist destination attributes, part of Cabela's strategy is to negotiate economic development arrangements with local and state governments. Frequently, these economic development arrangements result in Cabela's owning economic development bonds which represent the present value of the future taxes generated by a store or a district around a store. Monetizing these economic development bonds will enhance the individual store return as well as provide cash for future store locations.
Cabela's said it views the monetization of the economic development bonds in Wheeling as an important validation of its strategy. It proves Cabela's can monetize these bonds and recycle this cash into future store locations.
