NU Online News Service, Feb. 5, 2004, 4:35 p.m. EST – Penn Treaty American Corp., Allentown, Pa., says it is raising $14 million by selling notes through a private placement.[@@]
Penn Treaty helped create the modern long term care insurance market, but it ran short on capital in 2001. The company has been working to rebuild its capital levels ever since. The proceeds from the note sale should help the company make all debt payments due through October 2005, the company says.
The notes pay an annual interest rate of 6.25% and are due in 2008.