Capital One To Be Exclusive Long-term Card Issuing Partner With Cabela's

(RTTNews) - Capital One Financial Corp. (COF) said it has entered into a 10-year program agreement to become the exclusive issuing partner of co-branded credit cards to Cabela's Inc.(CAB) customers.

The agreement will become effective concurrent with Bass Pro Shops' completion of its proposed acquisition of Cabela's that also was announced today. Cabela is a retailer of hunting, fishing and camping supplies.

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. This includes about $5.2 billion in credit card receivables and other assets as well as about $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. The company 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.

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. The transaction is subject to the concurrent closing of Bass Pro Shops' acquisition of Cabela's, regulatory approval and the satisfaction of other customary closing conditions.