MCLEAN, Va., Oct. 3, 2016 /PRNewswire/ -- Capital One
Financial Corporation (NYSE: COF) today announced that it has
entered into a 10-year program agreement to become the exclusive
issuing partner of co-branded credit cards to Cabela's customers.
This agreement will become effective concurrent with Bass Pro
Shops' completion of its proposed acquisition of Cabela's that also
was announced today.
"This partnership is an appealing strategic and financial
opportunity, and plays to our strengths in the retail card
partnership space," said Jimmy
Cannon, Executive Vice President, Card Partnerships at
Capital One. "Brand loyalty has been a hallmark for both Bass Pro
Shops and Cabela's and, together, we are looking forward to
building on the strength of those relationships by providing
customers with a rewarding experience."
In connection with the Cabela's credit card program, Capital One
has entered into a definitive agreement under which it will acquire
the credit card operation from Cabela's, including approximately
$5.2 billion in credit card
receivables and other assets and approximately $5 billion in associated funding liabilities.
Capital One will acquire Cabela's credit card operations for par
value of the credit card receivables, less the par value of assumed
liabilities. The agreement includes revenue and loss sharing
provisions for the ongoing credit card program.
Capital One expects this partnership to provide a strong
platform for future growth and returns in its Partnerships credit
card business. Capital One does not expect this acquisition to
impact its approved capital distribution plan described in its
Quarterly Report on Form 10-Q for the quarterly period ended
June 30, 2016.
"We are pleased to partner with Capital One, a leading financial
institution with a long track record of successfully operating
programs similar to our CLUB Visa portfolio," said Tommy Millner, Cabela's Chief Executive Officer.
"This agreement aligns Cabela's with a strong partner that is
committed to operating this program with the same care and
customer-focused approach as Cabela's has provided since its
inception."
Johnny Morris, founder and CEO of
Bass Pro Shops, said, "Cabela's has developed a remarkably loyal
base of credit card customers and we look forward to partnering
with Capital One as we continue to provide those customers with
tremendous service as part of the Bass Pro Shops' family."
The Cabela's credit card program transaction, including the
acquisition of Cabela's credit card operations, is expected to
close in the first half of 2017, subject to the concurrent closing
of Bass Pro Shops' acquisition of Cabela's, regulatory approval and
the satisfaction of other customary closing conditions.
The Kessler Group and Credit Suisse acted as financial advisers
to Capital One and Wachtell, Lipton, Rosen & Katz and Chapman
and Cutler acted as legal advisers to Capital One. Guggenheim
Securities served as exclusive financial advisor to Cabela's and
Sidley Austin LLP and Koley Jessen
P.C., L.L.O. served as Cabela's legal counsel. J.P. Morgan
served as exclusive financial advisor to Bass Pro Shops and Latham
& Watkins served as Bass Pro Shops' legal counsel, with expert
assistance from O'Melveny & Myers. Goldman, Sachs &
Co. served as advisor to Bass Pro Shops on the bank transaction,
and Morrison & Foerster served as legal counsel.
Forward-Looking Statements
Certain statements in this
release may constitute forward-looking statements, which involve a
number of risks and uncertainties. Such forward-looking statements
include, but are not limited to, statements about the projected
impact and benefits of the acquisition by Capital One of Cabela's
credit card operations and of the ongoing credit card program,
including Capital One's plans, objectives, expectations and
intentions and other statements that are not historical facts.
Capital One cautions readers that any forward-looking information
is not a guarantee of future performance and that actual results
could differ materially from those contained in the forward-looking
information due to a number of factors, including among others
those listed from time to time in reports that Capital One files
with the Securities and Exchange Commission, including, but not
limited to, the Annual Report on Form 10-K for the year ended
December 31, 2015, and the following
factors: the possibility that regulatory and other approvals
and conditions to the transaction are not received or satisfied on
a timely basis or at all; the possibility that modifications to the
terms of the transaction may be required in order to obtain or
satisfy such approvals or conditions; the possibility that Capital
One may not fully realize the projected benefits of the
transaction; changes in the anticipated timing for closing the
transaction; business disruption during the pendency of or
following the transaction; diversion of management time on
transaction-related issues; and the reaction of customers and other
parties to the transaction. Forward-looking statements speak
only as of the date they are made and Capital One assumes no duty
to update forward-looking statements.
About Capital One
Capital One
Financial Corporation (www.capitalone.com) is a financial holding
company whose subsidiaries, which include Capital One, N.A., and
Capital One Bank (USA), N.A., had
$221.1 billion in deposits and
$339.1 billion in total assets as of
June 30, 2016. Headquartered in
McLean, Virginia, Capital One
offers a broad spectrum of financial products and services to
consumers, small businesses and commercial clients through a
variety of channels. Capital One, N.A. has branches located
primarily in New York,
Louisiana, Texas, Maryland, Virginia, New
Jersey and the District of
Columbia. A Fortune 500 company, Capital One trades on the
New York Stock Exchange under the symbol "COF" and is included in
the S&P 100 index.
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SOURCE Capital One Financial Corporation