Morning Commentary: High-grade deal pipeline fills; Fifth Third, Vulcan, Kemper to price

By Cristal Cody

Tupelo, Miss., June 12 – Several investment-grade bond deals are expected to price over Monday’s session.

Fifth Third Bancorp plans to sell five-year senior notes.

Vulcan Materials Co. is marketing new three-year floating-rate notes and new 30-year fixed-rate notes, as well as an add-on to its 3.9% notes due April 1, 2027.

Kemper Corp. is reopening its 4.35% senior notes due Feb. 15, 2025.

Also, Masco Corp. intends to price two tranches of senior fixed-rate notes.

Public Service Co. of Colorado is offering 30-year first mortgage bonds.

In the secondary market, Vulcan Materials’ 3.9% notes due April 1, 2027 (Baa/BBB/BBB-) last traded on Thursday at 101.29, according to a market source. The Birmingham, Ala.-based construction materials manufacturer sold $350 million of the notes on March 9 at 99.603 to yield 3.948%, or Treasuries plus 135 basis points.

Kemper’s 4.35% notes due 2025 (Baa3/BBB-/BBB-) were last seen in the secondary market on Friday at 102.14, a source said. The Chicago-based insurance holding company sold $250 million of the notes on Feb. 19, 2015 at 99.94 to yield 4.36%, or 225 bps over Treasuries.

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