Interest rates have made the Tennessee Valley Authority an offer it can't refuse.

Falling rates prompted the agency, which just last month issued $1.25 billion of new debt, to accept bids today for a $700 million 30-year offering, according to William F. Malec, the TVA's chief financial officer.

The agency will use the issue's proceeds to pay off debt held by the Federal Financing Bank, a move that translates to $7.5 million in annual interest costs for the TVA, he said.

The TVA plans to call four small Federal Financing Bank issues that mature in 20 years, Mr. Malec said.

By issuing the 30-year bonds, the agency not only reduces its interest costs, it also extends the maturity another 10 years.

The issues mark the last of the TVA's callable debt held by the Federal Financing Bank, Mr. Malec said. After the TVA refinances them, about $6 billion of noncallable Federal Financing Bank debt will remain, he said.

The TVA can begin calling the debt to be refunded starting in November. It plans to invest the proceeds from tomorrow's offering until the issues' call dates, the agency said.

Today's offering included, the TVA will have issued close to $13.5 billion of new debt since 1989.

Of that, a $1 billion 50-year issue was for new money, and close to S12.5 billion was for refinancing. The Federal Financing Bank held most of that $12.5 billion. The TVA sold the 50-year issue last April.

The TVA had originally planned to accept bids tomorrow, but changed the date because of other issues in the market. Among them is another utility, New England Power Co. New England is expected to price a 30-year deal, noncallable for 10 years, through competitive bidding on Tuesday.

Though the TVA's agency status distinguishes it from other utility issuers, the TVA thought it was wise to wait, Mr. Malec said.

A New England Power spokesman said that the TVA's announcement of a Tuesday offering prompted New England to review its deal's timing initially, but that bidding remained scheduled for Tuesday. Though several differences exist between the two offerings, "we were concerned and they were concerned about going on the same day," he said.

In secondary trading Friday, high-grade bond issues gained 3/8 to 1/2 point in the long end, while high-yield bonds finished firm and up about 1/8 point in quiet trading.

New issues

Computervision Corp. issued a $300 million two-part offering. The first tranche consisted of $125 million of 10.875% senior notes due 1997 at par. The notes are callable after three years at 104.35, moving to par in the fifth year. Moody's investors Service rates the notes B2, while Standard & Poor's Corp. rates them B-plus.

The second tranche consisted of $175 million of 11.375% senior subordinated notes due 1999. The notes are callable after five years at 104..35, moving to par in the last year. Moody's rates the offering B3, while Standard & Poor's rates it B-minus. Lehman Brothers lead managed the offering. The offering comes with a change of control put at par.

Owens-Illinois issued $200 million of 9.750% senior subordinated notes due 2004 at par. The notes are callable after five years at 104.875, moving to par in the 10th year. Moody's rates the offering B2, while Standard & Poor's rates it B-plus.

Laidlaw Inc. issued $200 million of 7.7% debentures due 2002 at par. The noncallable debentures were priced to yield 1 15 basis points over comparable Treasuries. Moody's rates the offering Baa2, while Standard & Poor's rates it BBB-plus. Goldman, Sachs & Co. lead managed the offering.

NBD Bancorp issued 9200 million of 7.250% subordinated debentures due 2004. The noncallable debentures were priced at 99.7265 to yield 7.285% or 72 basis points over comparable Treasuries. Moody's rates the offering Al, while Standard & Poor's rates it A-plus. J.P. Morgan Securities Inc. lead managed the offering.

Century Communications issued $150 million of 9.5% senior notes due 2000. The noncallable notes were priced at 99.311 to yield 9.625%. Moody's rates the offering Ba3, while Standard & Poor's rates it B-plus. BT Securities Corp. managed the offering.

Pittsburgh National Bank issued $150 million of 3.50% bank notes due 1993. The noncallable notes were priced at 99.98 to yield 3.52% or 10 basis points over the one-year Treasury bill. Moody's rates the offering Aa3, while Standard & Poor's rates it A-plus. Lehman Brothers managed the offering.

Federal Farm Credit Bank issued $150 million of floating rate notes at par. The notes float dally at 275 basis points below the prime rate and pay quarterly. Goldman Sachs sole managed the offering.

Pittsburgh National Bank issued $100 million of 3.50% bank notes due 1993. The noncallable notes were priced initially at par. Moody's rates the offering Aa3, while Standard & Poor's rates it A-plus. J.P. Morgan sole managed the offering.

ITT Financial issued $100 million of 5% notes due 1995. The noncallable notes were priced at 99.50 to yield 5.182% or 50 basis points over comparable Treasuries. Moody's rates the offering A2, while Standard & Poor's rates it A. Merrill Lynch & Co. managed the offering.

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