Penn Treaty American Corporation Announces Intent to Undertake a Rights Offering

Apr 04, 2001, 01:00 ET from Penn Treaty American Corporation

    ALLENTOWN, Pa., April 4 /PRNewswire/ --
 Penn Treaty American Corporation (NYSE:   PTA) announced today that it intends,
 with the assistance of its financial advisors, to undertake a distribution of
 rights to its shareholders for the purpose of raising new equity capital.
 Pursuant to the rights offering, holders of Penn Treaty's common stock and
 holders of its 2003 Convertible Notes will receive rights to purchase newly
 issued shares of common stock at a set price.  Penn Treaty anticipates that
 the rights will be freely transferable.  Specific terms, including the
 exercise price, record date for distribution and expiration of the rights will
 be provided along with a prospectus supplement for the offering.  Shares
 issuable pursuant to the rights offering will be issued under Penn Treaty's
 effective shelf registration statement.  Penn Treaty plans to commence the
 rights offering as soon as possible and is targeting at least $40 million of
 proceeds from the rights offering.
 
     Certain statements made by the Company, in this press release, may be
 considered forward-looking within the meaning of the Private Securities
 Litigation Reform Act of 1995.  Although the Company believes that its
 expectations are based upon reasonable assumptions within the bounds of its
 knowledge of its business and operations, there can be no assurance that
 actual results of the Company's operations will not differ materially from its
 expectations.  Factors which could cause actual results to differ from
 expectations include, among others, the Company's ability to successfully
 complete the rights offering, the Company's ability to raise adequate capital
 to meet the requirements of current business and anticipated growth, the
 adequacy of the Company's loss reserves, the Company's ability to qualify new
 insurance products for sale in certain states and to succeed in obtaining
 necessary rate increases, the Company's ability to comply with government
 regulations and the requirements which may be imposed by state regulators as a
 result of the Company's surplus levels, the ability of senior citizens to
 purchase the Company's products in light of the increasing costs of health
 care, the modality of premium revenue, the ability of the Company to defend
 itself from adverse litigation, and the Company's ability to expand its
 network of productive independent agents.  For additional information, please
 refer to the Company's reports filed with the Securities and Exchange
 Commission.
 
 

SOURCE Penn Treaty American Corporation
    ALLENTOWN, Pa., April 4 /PRNewswire/ --
 Penn Treaty American Corporation (NYSE:   PTA) announced today that it intends,
 with the assistance of its financial advisors, to undertake a distribution of
 rights to its shareholders for the purpose of raising new equity capital.
 Pursuant to the rights offering, holders of Penn Treaty's common stock and
 holders of its 2003 Convertible Notes will receive rights to purchase newly
 issued shares of common stock at a set price.  Penn Treaty anticipates that
 the rights will be freely transferable.  Specific terms, including the
 exercise price, record date for distribution and expiration of the rights will
 be provided along with a prospectus supplement for the offering.  Shares
 issuable pursuant to the rights offering will be issued under Penn Treaty's
 effective shelf registration statement.  Penn Treaty plans to commence the
 rights offering as soon as possible and is targeting at least $40 million of
 proceeds from the rights offering.
 
     Certain statements made by the Company, in this press release, may be
 considered forward-looking within the meaning of the Private Securities
 Litigation Reform Act of 1995.  Although the Company believes that its
 expectations are based upon reasonable assumptions within the bounds of its
 knowledge of its business and operations, there can be no assurance that
 actual results of the Company's operations will not differ materially from its
 expectations.  Factors which could cause actual results to differ from
 expectations include, among others, the Company's ability to successfully
 complete the rights offering, the Company's ability to raise adequate capital
 to meet the requirements of current business and anticipated growth, the
 adequacy of the Company's loss reserves, the Company's ability to qualify new
 insurance products for sale in certain states and to succeed in obtaining
 necessary rate increases, the Company's ability to comply with government
 regulations and the requirements which may be imposed by state regulators as a
 result of the Company's surplus levels, the ability of senior citizens to
 purchase the Company's products in light of the increasing costs of health
 care, the modality of premium revenue, the ability of the Company to defend
 itself from adverse litigation, and the Company's ability to expand its
 network of productive independent agents.  For additional information, please
 refer to the Company's reports filed with the Securities and Exchange
 Commission.
 
 SOURCE  Penn Treaty American Corporation