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Cabela’s closes $500M securitization

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Sidney, Neb. Cabela’s said Tuesday that it completed the sale of $500 million of asset-backed notes. The chain entered into the securitization transaction, or the pooling of cash-flow-producing financial assets into securities, and then sold to investors, to provide adequate liquidity to Cabela’s wholly owned subsidiary World’s Foremost Bank.

The 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 transaction also included the issuance of three subordinated classes of notes in the aggregate principal amount of $75 million.

The funding should provide the bank with liquidity well into second quarter 2010, according to a company statement.

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