Cabelas Inc. announced that Cabelas Credit Card Master Note Trust successfully completed the sale of $500 million of Asset-Backed Notes, Series 2009-I. The securitization transaction included the issuance of $425 million of Class A Notes, which accrue interest at a floating rate equal to one-month LIBOR plus 2.00% per year. The Class A Notes are eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF) established by the Federal Reserve.
The securitization transaction also included the issuance of three subordinated classes of notes in the aggregate principal amount of $75,000,000. World's Foremost Bank, Cabelas 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 three years, with a legal maturity of approximately six years. The securitization transaction refinanced asset-backed notes issued by the Note Trust that matured in 2009 and is expected to provide adequate liquidity to Worlds Foremost Bank well into the second quarter of 2010.
“We are one of the first to utilize the TALF program and are extremely pleased with the outcome,” said Joe Friebe, President and Chief Executive Officer of Worlds Foremost Bank. “We completed this transaction, which was oversubscribed, in an extremely tough market, demonstrating that Cabelas CLUB Visa portfolio continues to be well received in the marketplace.”