Cabela's Inc. has expanded by 86 percent how much it can borrow through its credit facility in a move that could help it expand faster than competitors.


The Sidney, NE-based company said it had signed a new $775 million, five-year credit facility with a consortium of banks led by US Bank. The agreement expands and extends a five-year, $415 million credit facility the parties signed in 2011. The new facility can be increased to $800 million under certain terms and conditions.



Cabela’s operates 56 stores in North America and has announced plans to open 21 more over the next two years. It is also expanding its private label offerings and loyalty program.

 

Competitor Academy Sports+Outdoors, Gander Mountain and newly public Sportsman’s Warehouse have all accelerated their store opening plans in recent years, while Bass Pro Shops continues to open many of its stores in the Southeast, which CAB has said is critical to its growth.

 

“This agreement is a testament to the confidence our partners have in Cabela's,” said Cabela's CEO Tommy Millner. “The amended facility provides us with long-term financing flexibility as we continue to expand our retail store footprint, increase brand loyalty through the operations of Cabela's Club, focus on our omni-channel strategy and increase our market share.”