Adelphia overnight $500 million mandatory convertibles at 7.5% yield, up 17.6%

By Ronda Fears

Nashville, Tenn., Jan. 15 - Adelphia Communications Corp. priced after Tuesday's close $500 million of three-year mandatory convertibles to yield 7.5% with an initial conversion premium of around 17.6%.

Salomon Smith Barney was sole lead manager of the deal, which priced alongside a common stock offering. The final conversion premium will be set early Wednesday.

There is a $75 million greenshoe available.

Adelphia has three other convertibles outstanding - its 3.25% convertible notes due 2021, 6% convertible notes due 2006 and a perpetual 5.5% convertible preferred. Plans for the new mandatory convertible surfaced during the company's spin-off of Adelphia Business Solutions Inc., which was completed earlier this week.

Adelphia shares closed Tuesday down $1.12 to $27.25.

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