Morning Commentary: Campbell Soup, Fifth Third, Caterpillar, Sprint eye deals; Valero holds calls

By Cristal Cody

Tupelo, Miss., March 12 – Several corporate issuers prepared to tap the bond market on Monday, while heavy investment-grade primary action is expected to continue over the week.

Campbell Soup Co. (Baa2/BBB) is on deck with a seven-tranche offering of senior notes following the company’s fixed income investor calls held on Tuesday, a source said.

Other issuers marketing bonds on Monday include Fifth Third Bancorp, WGL Holdings, Inc., Southwest Gas Corp. and Caterpillar Financial Services Corp.

In addition, Sprint Corp. subsidiaries Sprint Spectrum Co. LLC, Sprint Spectrum Co. II LLC and Sprint Spectrum Co. III LLC intend to price wireless spectrum-backed senior secured notes (Baa2//BBB) in two tranches.

Also on Monday, Valero Energy Partners LP (Baa3/BBB-/BBB-) is holding fixed income investor calls for a possible deal, a source said. Barclays, Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc. and MUFG are the arrangers.

Deal action was heavy in the previous week with more than $50 billion of high-grade corporate bonds priced through Friday, a source said.

About $30 billion to $35 billion of supply is forecasted by market sources for the week.

Elsewhere over the morning, the three-month Libor was reported at 2.09%, up 2 basis points, a source said.

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