Rogers junk issue is year's second largest, but others may grab that honor soon.

Rogers Cantel Mobile Inc. yesterday increased its note offering to $400 million from $250 million originally, and could boost it to $460 million if demand continues.

The Canadian cellular telephone company's offering becomes the high-yield market's second largest deal this year, trailing only RJR Nabisco Capital Corp.'s $1.5 billion of senior notes last April.

Merrill Lynch & Co., which lead managed RJR's deal, sole managed Rogers' offering.

"The book built up early and it stayed strong," said Sandy Rich, a managing director at Merrill Lynch & Co. Demand came from as far away as Japan, he said.

But one trader said larger deals now filed with the Securities and Exchange Commission -- Owens-Illinois Inc.'s $1 billion offering, among others -- will soon snatch Rogers's second-place laurels. Merrill is also lead managing that deal.

Rogers's issue contains a 15% "green shoe," a clause which allows a deal's size to be increased if exceptional demand exists. Under the agreement, Rogers has granted the underwriter a 10-day option to purchase up to $60 million more of the securities, bringing the total to $460 million.

The senior secured guaranteed notes due 2001 were priced 10.75% and are callable after five years. Moody's Investors Service rates the note Ba3, while Standard & Poor's Corp. rates them BB-minus.

Another high-yield issuer, Clark Oil & Refining Corp., plans to begin the roadshow for its $200 million senior unsecured note offering the week of Nov. 18 or possibly sooner, said Donald Nonnenkamp, the company's treasurer.

The St. Louis-based company's offering consists of $100 million of fixed rate notes and $100 million of floating rate notes.

Clark will use proceeds from the deal to redeem $50 million of its outstanding floating rate debt due 1994 and for general corporate purposes. Those purposes include some improvements the company must make in coming years to comply with recently enacted environmental legislation, Mr. Nonnenkamp said.

The company's outstanding floating rate first mortgage notes currently carry a BB rating, Mike Robertson, a rating officer at Standard & Poor's said.

"The financial performance has been strong since the original issue was rated," Mr. Robertson said.

The high-yield market overall was unchanged to up 1/4 point. The high-grade market was up about 1/8 point.

Finance companies dominated yesterday's high-grade new issue market.

"This week has been so true to form. You get a Treasury auction and alternative issuers come in. You get a discount rate cut and the finance companies come in," Michael Bassett, a vice president at Stone & McCarthy Research said.

Finance companies are the most consistent rate players, Mr. Bassett said. If any turn in rates occurs, or if they perceive a change, finance companies jump in, he said.

"When they perceive that there is some kind of watershed or potential for a watershed, they are going to fund," he said.

Yesterday's investment-grade issuers included J.P. Morgan & Co. which issued $250 million of 7.625% subordinated notes due 1998. The noncallable notes were priced at 99.882 to yield 7.647% or 50 basis points over comparable Treasuries. Moody's rates the offering AA2, while Standard & Poor's rates the offering AA-plus. Kidder, Peabody & Co. sole managed the offering.

Household Finance Corp.'s $200 million of 6.87% noncallable notes due 1994 were priced at par to yield 92 basis points over comparable Treasuries. Moody's rates them A3, while Standard & Poor's assigns an A-plus. Merrill won competitive bidding to underwrite the offering.

ITT Financial issued $200 million of 8.125% notes due 1998. The noncallable notes were priced at 99.847 to yield 8.154%, or 100 basis points over comparable Treasuries. Moody's rates the deal A2, while Standard & Poor's rates it A. Salomon lead managed the offering.

AVCO Financial Service issued $200 million of 7.5% notes priced at par and due 1996. The noncallable notes were priced to yield 78 basis points over five-year Treasuries. Moody's rates the notes A2, while Standard & Poor's rates them A. Salomon lead managed the offering.

American General Finance issued $100 million of 7.375% notes due 1996. The noncallable notes were priced at 99.85 to yield 7.412% or 70 basis points over comparable Treasuries. Moody's rates the notes A1, while Standard & Poor's rates them A-plus. Salomon lead managed the offering.

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