Cabela’s Incorporated announced that Cabela’s Credit Card Master Note Trust successfully completed the sale of $400 million of asset-backed notes, series 2015-II.
The securitization transaction included the issuance of $240 million of Class A-1 Notes, which accrue interest at a fixed rate of 2.25% per year, and $100 million of Class A-2 Notes, which accrue interest at a floating rate equal to one-month LIBOR plus 0.67% per year. The securitization transaction also included the issuance of three subordinated classes of notes in the aggregate principal amount of $60 million. World's Foremost Bank, Cabela’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 five years, with a legal maturity of approximately eight years. This securitization transaction will help finance the growth of World’s Foremost Bank’s credit card portfolio.
“We are thrilled to announce the completion of our second SEC registered term securitization for 2015,” said Tommy Millner, Cabela’s chief executive officer. “There has been some recent volatility in the market so we are pleased with the mix of fixed and floating rate funding achieved in this transaction. The execution of this transaction is a testament to the Cabela’s® brand and signifies the continued strength of the Cabela’s CLUB Visa portfolio.”
