Campbell sells $5.3 billion; Standard Chartered, Caterpillar, Toyota Industries in primary

By Cristal Cody

Tupelo, Miss., March 12 – Issuance came in heavy on Monday in what is predicted to be a busy week for high-grade corporate bond issuance.

Campbell Soup Co. led the deal action during the session with a $5.3 billion seven-tranche offering of notes.

Standard Chartered plc came with $1.75 billion of notes in two tranches.

Caterpillar Financial Services Corp. priced $1.15 billion of medium-term notes in three parts.

Toyota Industries Corp. tapped the primary market on Monday following its roadshow earlier in the month with a $1 billion two-part bond deal.

Also on Monday, Fifth Third Bancorp sold $650 million of 10-year senior notes.

WGL Holdings, Inc. raised $250 million in a sale of two-year floating-rate senior notes.

In addition, issuance on Monday included a $300 million 10-year note deal from Southwest Gas Corp.

In other action, Sprint Corp. subsidiaries Sprint Spectrum Co. LLC, Sprint Spectrum Co. II LLC and Sprint Spectrum Co. III LLC plan to price wireless spectrum-backed senior secured notes (Baa2//BBB) in two tranches following a telephone roadshow on Monday and Tuesday, a source said.

Also on Monday, Valero Energy Partners LP (Baa3/BBB-/BBB-) held 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.

Volume was heavy in the previous week with more than $50 billion of high-grade corporate bonds priced through Friday, which included a $40 billion deal from CVS Health Corp., market sources reported.

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

The Markit CDX North American Investment Grade 29 index tightened about 1 basis point to a spread of 54 bps on Monday. The new series 30 index will start trading on March 20.

Campbell sells seven tranches

Campbell Soup priced $5.3 billion of notes (Baa2/BBB/) in seven tranches on Monday, according to a market source.

The company sold $500 million of two-year floating-rate notes at Libor plus 50 bps.

Campbell Soup placed $400 million of three-year floaters at Libor plus 63 bps.

The $650 million tranche of 3.3% three-year fixed-rate notes was sold with a spread of 90 bps over Treasuries.

In the five-year tranche, the company sold $1.2 billion of 3.65% notes at a Treasuries plus 105 bps spread.

Campbell Soup priced $850 million of 3.95% seven-year notes with a 120 bps over Treasuries spread.

The $1 billion tranche of 4.15% 10-year notes priced with a spread of 130 bps over Treasuries.

In the final tranche, Campbell Soup sold $700 million of 4.8% 30-year bonds with a spread of Treasuries plus 170 bps.

Credit Suisse Securities, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and BNP Paribas Securities Corp. were the bookrunners.

Campbell Soup is a convenience foods company based in Camden, N.J.

Standard Chartered prints

Standard Chartered priced $1.75 billion of notes in two tranches on Monday, according to a market source.

Standard Chartered sold $1.25 billion of 3.885% fixed-to-floating-rate notes due March 15, 2024 at a spread of Treasuries plus 125 bps, on the tight side of guidance in the Treasuries plus 130 bps spread area. The notes will convert to a floating rate of Libor plus 108 bps after the initial fixed-rate period.

The company priced $500 million of 4.866% notes due March 15, 2033 on top of guidance at a spread of 200 bps over Treasuries.

Barclays, Credit Agricole CIB, Goldman Sachs & Co. LLC, J.P. Morgan Securities and Standard Chartered Bank were the lead managers.

Standard Chartered is a London-based banking and financial services company.

Caterpillar sells $1.15 billion

Caterpillar Financial Services priced $1.15 billion of medium-term notes (A3/BBB+/A) in three tranches on Monday, according to FWP filings with the Securities and Exchange Commission.

Caterpillar placed $450 million of series I three-year floating-rate notes at par to yield Libor plus 23 bps.

The company sold $450 million of series I 2.9% three-year fixed-rate notes at 99.946 to yield 2.919%, or a spread of Treasuries plus 50 bps.

Caterpillar also priced a $250 million reopening of its series H 3.25% notes due Dec. 1, 2024 at 99.014 to yield 3.415%. The notes were sold with a Treasuries plus 78 bps spread.

Caterpillar previously issued $250 million of the notes on Dec. 1, 2014 at 99.89 to yield 3.263%, or a spread of 95 bps over Treasuries. Caterpillar also issued $125 million of the notes on March 5, 2015 at 103.792 to yield 2.802%, or a Treasuries plus 80 bps spread. The total outstanding now is $625 million.

Barclays, J.P. Morgan Securities, Morgan Stanley & Co. LLC and SG Americas Securities, LLC were the bookrunners.

Nashville, Tenn.-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.

Toyota brings $1 billion

Toyota Industries (A1/AA-/) priced $1 billion of notes in two tranches on the tight side of guidance in a Rule 144A and Regulation S offering on Monday, according to a market source.

The company sold $500 million of 3.235% five-year notes at a spread of 60 bps over Treasuries. The notes were talked to price with a spread in the Treasuries plus 65 bps area.

Toyota priced $500 million of 3.566% 10-year notes with a spread of 70 bps over Treasuries, compared to spread talk in the Treasuries plus 75 bps area.

BofA Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities, Mizuho Securities USA Inc., Morgan Stanley, Nomura Securities International, Inc. and SMBC Nikko Securities America, Inc. were the bookrunners.

The company held a roadshow in the United States, Europe and Asia earlier in March for the benchmark bond offering.

Toyota Industries is a Japanese machine maker based in Kariya, Aichi Prefecture, Japan.

Fifth Third Bancorp prices

Fifth Third Bancorp sold $650 million of 3.95% 10-year senior notes (Baa1/BBB+/A-) on Monday at a spread of 110 bps over Treasuries, according to an FWP filing with the SEC.

The notes priced at 99.82 to yield 3.972%.

Morgan Stanley, Citigroup Global Markets, Goldman Sachs and RBC Capital Markets, LLC were the bookrunners.

Fifth Third is a Cincinnati-based financial services company.

Southwest Gas sells notes

Southwest Gas sold $300 million of 3.7% 10-year senior notes on Monday at a spread of 85 bps over Treasuries, according to an FWP filing with the SEC.

The notes (A3/BBB+/A) priced at 99.815 to yield 3.722%.

KeyBanc Capital Markets Inc., MUFG and U.S. Bancorp Investments Inc. were the bookrunners.

The natural gas distributor is based in Las Vegas.

WGL brings floaters

WGL Holdings priced $250 million of two-year floating-rate senior notes (A3/A-/A-) on Monday at par to yield Libor plus 55 bps, according to an FWP filed with the SEC.

U.S. Bancorp Investments and RBC Capital Markets were the bookrunners.

WGL Holdings is a Washington, D.C.-based natural gas and energy products and services provider.

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