Cabela's 2004 Annual Report Download - page 56

provide greater Öexibility for liquidity needs. The total amounts and maturities for the term credit card
securitizations as of the end of Ñscal 2004 are as follows:
Initial CertiÑcate
Series Type Amount Rate Expected Final
Series 2001-2 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Term $250,000 Floating November 2006
Series 2003-1 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Term $300,000 Fixed January 2008
Series 2003-2 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Variable Funding $300,000 Floating March 2005
Series 2003-2 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Variable Funding $ 50,000 Floating February 2005*
Series 2004-I ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Term $ 75,000 Fixed March 2009
Series 2004-II ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Term $175,000 Floating March 2009
* The Series 2003-2, which matured in February of 2005, was a temporary three month increase in that
series.
We have been, and will continue to be, particularly reliant on funding from securitization transactions
for our Financial Services business. A failure to renew existing facilities or to add additional capacity on
favorable terms as it becomes necessary could increase our Ñnancing costs and potentially limit our ability
to grow our Financial Services business. Unfavorable conditions in the asset-backed securities markets
generally, including the unavailability of commercial bank liquidity support or credit enhancements, such
as Ñnancial guaranty insurance, could have a similar eÅect. We expect to renew our $300,000 variable
funding commercial paper facility that expires in March 2005.
Furthermore, poor performance of our securitized receivables, including increased delinquencies and
credit losses, lower payment rates or a decrease in excess spreads below certain thresholds, could result in
a downgrade or withdrawal of the ratings on the outstanding securities issued in our securitization
transactions, cause early amortization of these securities or result in higher required credit enhancement
levels. This could jeopardize our ability to complete other securitization transactions on acceptable terms,
decrease our liquidity and force us to rely on other potentially more expensive funding sources, to the
extent available, which would decrease our proÑtability.
CertiÑcates of Deposit. We utilize certiÑcates of deposit to partially Ñnance the operating activities of
our bank. Our bank issues certiÑcates of deposit in a minimum amount of $100,000 in various maturities.
As of January 1, 2005, we had $100.7 million of certiÑcates of deposit outstanding with maturities ranging
from January 2005 to May 2014 and with weighted average eÅective annual Ñxed rate of 3.34%.
CertiÑcate of deposit borrowings are subject to regulatory capital requirements.
Credit Facilities and other Indebtedness
We have a revolving credit facility with a group of banks that provides us with a $230 million
unsecured line of credit, which is available for our operations. This revolving facility, which expires on
June 30, 2007, provides for a LIBOR-based rate of interest plus a spread of between 0.80% and 1.425%
based upon our achievement of certain cash Öow leverage ratios. During the term of the facility, we are
also required to pay a facility fee, which ranges from 0.125% to 0.25%. Our credit facility also permits the
issuance of up to $100 million in letters of credit and standby letters of credit, which are applied against
the overall credit limit available under the revolver. We utilize these letters of credit to support purchases
from our suppliers in the ordinary course of our business. The average outstanding amount under these
letters of credit during Ñscal 2004 was $44.5 million. There were no outstanding principal amounts under
the credit facility as of Ñscal year end 2004. Our total remaining borrowing capacity under the credit
facility, after subtracting outstanding letters of credit of $31.1 million, and standby letters of credit of
$6.5 million, as of Ñscal year end 2004 was $192.4 million.
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