New Issue: Adelphia reprices $500 mln notes, raising yield to 11% from 10.5%

By Paul A. Harris

St. Louis, Mo., Oct. 19 - Adelphia Communications Corp. repriced Tuesday its $500 million of five-year senior notes originally priced Friday, increasing the yield by 50 basis points after Moody's Investors Service put the company's ratings on review for possible downgrade, according to a source close to the deal.

The offering was repriced at 97.161 for a yield of 11% compared to the originally level of 99.039 for a yield of 10.5%, the source said.

Bookrunner was Credit Suisse First Boston.

The 10¼% coupon will increase a further 50 basis points if Adelphia Communications does not deconsolidate Adelphia Business Solutions within 180 days, the source added.

The source further commented that changes when the offering was reallocated were minimal.

Issuer: Adelphia Communications Corp.

Bookrunner: Credit Suisse First Boston

Amount: $500 million

Type: Senior unsecured notes

Maturity: Nov. 1, 2006

Coupon: 10¼%

Price: 97.161, reduced from 99.039

Yield: 11%, increased from 10.50%

Spread: 719 basis points, increased from 669 basis points

Call: Bullet

Settlement: Oct. 25 flat

End

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