Cabela's, a Sidney, Neb.-based company that sells hunting, fishing and outdoor gear, has signed a new credit facility, which increases its borrowing capacity by $95 million with an accordion feature to increase it a further $125 million.
The new credit is a five-year $325 million revolver that can be increased to $450 million. It replaces an existing three-year, $230 million revolver signed in 2004. With the opening of two stores this year and two more in the coming months, Chris Gay, treasurer, said the increased funds will give the company greater flexibility; they will not be used specifically for construction purposes.
U.S. Bank leads the deal, and Lasalle Bank, Wachovia Bank and Wells Fargo Bank are the co-syndication agents.JPMorgan, Coamerica and Sovereign Bank are also in the facility. "They [U.S. Bank] have been a partner of ours for a long time; they have been a great partner," said Gay. "They do a good job for us."
Pricing is based on cash flow leverage and was reduced approximately 15-20 basis points, depending upon the grid. Covenants were also decreased on the new facility, most noticeably the limitation for pay down on revolvers.