Outdoor financials: Rocky Brands gets new credit facility, plus Cabela’s
Rocky Brands (Nasdaq: RCKY) said it has received a revolving credit facility totaling $70 million from PNC Bank. Plus, Cabela’s closes $25 million securitization.
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Rocky Brands gets new credit facility
Rocky Brands (Nasdaq: RCKY) said it has received a revolving credit facility totaling $70 million from PNC Bank.
The new credit facility will replace the company’s existing revolving credit facility, the remaining balance of approximately $11 million under term loans, and the remaining balance of approximately $2 million under mortgage loans.
The term of the new credit facility will be five years and the initial interest rate will be LIBOR plus 1.75 percent.
The company anticipates the new revolving credit facility will reduce its annual interest expense by $2 million next year and provide less expensive capital to expand its business over the next five years.
The transaction is anticipated to close in October 2010. The company expects to recognize a non-cash charge of $1 million in the fourth quarter of 2010 relating to the extinguishment of the current credit facility, term loans and mortgage loans.
Cabela’s closes $25 million securitization
Cabela’s (NYSE: CAB) said its credit card master note trust completed the sale of $250 million of asset-backed notes.
The securitization transaction included the issuance of $127.5 million of Class A-1 Notes, which accrue interest at a fixed rate of 2.29 percent per year, and $85 million of Class A-2 Notes, which accrue interest at a floating rate equal to one-month LIBOR plus 0.70 percent per year.
The transaction also included the issuance of three subordinated classes of notes totaling $37.5 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, the company said.
–Compiled by Wendy Geister
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