Preliminary Results of Penn Treaty American Corporation Rights Offering Yield Net Proceeds of Approximately $26 Million
PR NEWSWIRE - May 29, 2001 16:05
ALLENTOWN, Pa., May 29, 2001 /PRNewswire via COMTEX/ -- Penn Treaty American Corporation (NYSE: PTA) announced that, based on a preliminary tally of subscription orders received pursuant to its recent Rights Offering, the net proceeds of the Rights Offering are expected to be approximately $26 million. The proceeds will be used to provide additional statutory capital to Penn Treaty's insurance subsidiary operations and to improve liquidity. The purchase price under the Rights Offering was $2.40 per share. The Rights Offering expired at 5:00 p.m. on May 25, 2001.
Holders of record of Penn Treaty's Common Stock and 6 1/4% Convertible Subordinated Notes due 2003 were eligible to participate in the Rights Offering. In addition to the holders of record, a group consisting of certain of Penn Treaty's top producing insurance agents issued standby commitments to purchase shares in connection with the Rights Offering. The proceeds of the standby commitments are included in the total estimate of $26 million noted above. Also included in the preliminary net proceeds are approximately $3 million in guaranteed delivery subscriptions.
Irving Levit, Penn Treaty's Chairman and CEO, commented, "The Rights Offering was a key element of our plan to raise additional capital, and we are deeply grateful for the support we received from those shareholders, note holders and agents who participated in the Rights Offering. We also greatly appreciate the loyalty and support of our employees and policyholders during this process."
Mr. Levit added, "We look forward to building on the capital base contributed by the Rights Offering, and will continue to explore and evaluate other capital-raising initiatives as appropriate." |
