A good story is helping to make <

for a happier-than-expected ending for Adelphia Communications Corp.'s plan to redeem some high-cost debt -- about $4 million-a-year happier, according to a company source.

The company yesterday set July <

1 as the date it would redeem its entire $250 million of outstanding 161-1/2% senior discount notes due in 1999, instead of just $150 million as planned earlier, according to Michael Mulcahey, director of investor relations at the Coudersport, Pa.-based cable television company.

The strong investor reception <

that allowed Adelphia to increase its May 7 issue of 12-1/2% senior notes due in 2002 to $400 million from $275 million allowed the company to retire all of the 16-1/2% discount notes, Mr. Mulcahey said.

The company had been watching <

the high-yield market for some time "and we were noticing that some of the better names were being well-received," Mr. Mulcahey said yesterday.

Adelphia has offered to redeem <

the notes at 104% of par plus accrued interest, or $1,088.60 per $1,000 principal amount of the notes.

Redeeming all $250 million <

means $10 million in annual interest savings for Adelphia, $4 million more than the $6 million it would have saved by redeeming just the $150 million, he said.

Ned Zachar, an analyst at Duff & <

Phelps/MCM Investment Research, noted that while Adelphia increased its May 7 offering to $400 million, the 12-1/2% coupon was higher than the 11-1/2% to 11-3/4% price talk. While taking out the 16-1/2% notes is a positive step, "we don't see any huge improvement as a result of this refinancing," he said.

Elsewhere yesterday, First <

Brands Corp. yesterday said it had called for redeeming the remaining $80.67 million of its 12-1/2% senior subordinated debentures due in 1998.

The debentures will be retired in <

30 days, the company says in a release. First Brands said it completed a private placement to fund the redemption. The private deal will also provide additional funds the company will use for general corporate purposes.

In secondary trading yesterday, <

the high-yield market finished unchanged in quiet trading. High-grade bond prices lagged Treasuries, which gained 1/2 point in the long end.

Yesterday's New Issues

Canadian Pacific Ltd. issued <

$250 million of 8.85% debentures due in 2022. Noncallable for 10 years, the debentures were priced at 99.82 to yield 8.867%, or 98 basis points over comparable Treasuries. Moody's rates the offering A2, while Standard & Poor's rate it A-plus. Goldman, Sachs & Co. lead managed the offering.

Federal Home Loan Bank issued <

$105 million of 6.875% debentures due in 1997 at par. Nocallable for a year, the bonds were priced to yield 18 basis points over comparable Treasuries. Merrill Lynch & Co. managed the offering.

CIT Group Holdings issued $100 <

million of noncallable floating rate notes due in 1993. The noncallable notes float daily at 230 basis points below prime and pay quarterly. Lehman Brothers managed the offering. Moody's rates the offering A1, while Standard & Poor's rates it A-plus.

Federal Home Loan Bank issued <

$83 million of 5.910% debentures due 1995 at par. Noncallable for a year, the bonds were priced to yield 10 basis points over comparable Treasuries. Goldman, Sachs & Co. managed the offering.

Monogahela Power issued $65 <

million of 8.50% first mortgage bonds due in 2022. Nonrefundable for five years, the noncallable bonds were priced at 99.25 to yield 8.57% or 68 basis points over 30-year Treasuries. Moody's rates the offering Aa3, while Standard & Poor's rates it AA-minus. Morgan Stanley won competitive bidding to manage the offering.

Standard & Poor's has downgraded <

Rohr Inc.'s subordinated debt ratings to BB-minus from BB-plus. The actions affects about $265 million of rated debt. The implied senior rating is BB-plus.

"The downgrade reflects Rohr's <

disappointing operating performance and poor internal cash generation, which will delay expected improvements in the firm's financial risk profile," the agency said in its release.

<

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