Morning Commentary: Vodafone, Equifax, Santander, Harris offer notes; Campbell Soup gains

By Cristal Cody

Tupelo, Miss., May 23 – After two fairly quiet days of supply, Wednesday looks set to see several high-grade bond deals in the primary market.

Vodafone Group plc firmed details of its offering with plans to price six tranches of notes. The company marketed the dollar-denominated notes in a roadshow that started May 16.

Also, Equifax Inc. is on deck with two tranches of senior notes.

Santander UK plc is marketing fixed- and floating-rate notes.

Harris Corp. plans to sell 10-year notes.

Less than $3 billion of investment-grade bonds were priced in the first two sessions of the week.

About $25 billion of supply was forecast for the short market week. The bond markets will close early on Friday and will remain closed on Monday for the Memorial Day holiday.

Secondary trading has been more active. On Tuesday, $18.47 billion of bonds were traded, up from $14.05 billion on Monday, according to Trace.

Campbell Soup Co.’s bonds (Baa2/BBB) traded better over the morning after softening since Friday’s announcement of the retirement of the company’s chief executive officer and the potential sale of some brands, a source said.

Campbell Soup’s 4.15% notes due March 15, 2028 were up to 96.14 from where the notes last traded on Tuesday at 94.97.

The $1 billion tranche of 10-year notes priced on March 12 at 99.887 to yield 4.164%, or a spread of 130 basis points over Treasuries.

The notes were seen as high 98.87 on Thursday.

Campbell Soup’s 4.8% notes due March 15, 2048 improved to 90.33 over the morning from 89.98 on Tuesday.

The long bonds priced in a $700 million tranche at 99.527 to yield 4.83% and a spread of Treasuries plus 170 bps.

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