Wilbur Ross Commits $20 Million To Penn Treaty

NU Online News Service, Nov. 18, 9:18 a.m. – Wilbur Ross & Company, New York, has agreed to lend $20 million to Penn Treaty American Corp., Allentown, Pa., a major long-term care insurer, by buying senior convertible notes that pay an interest rate of 6.25% and mature in 2008, Penn Treaty says.

Penn Treaty plans to issue at least $45 million of the new 2008 notes, and the terms will be similar to those of another series of 2008 notes that was just issued, Penn Treaty says.

Earlier, Wilbur Ross, a major holder of Penn Treaty debt, had argued that the cost of converting the Penn Treaty notes into Penn Treaty common stock ought to be lower.