NU Online News Service, Oct. 11, 11:15 a.m. –Penn Treaty American Corp., Allentown, Pa., is sweetening the terms of a previously announced note exchange and giving noteholders still more time to participate.
The long-term care insurer has offered to exchange $74.75 million in subordinated convertible notes due in 2003 for the same amount of convertible notes due in 2008.
Penn Treaty originally set a Sept. 26 deadline and a conversion price of $5.31 per share. The company has since extended the deadline twice, and now it is extending the deadline a third time, to Oct. 18. The company is also lowering the price holders must pay to convert the exchanged notes into common stock to $4.50 per share.
The reduction in the conversion price will apply to notes already tendered as well as notes tendered over the next week, Penn Treaty said.
Holders have now offered to tender a total of $50 million in notes, and they have discussed plans to tender another $13 million in notes, Penn Treaty says.