<PAGE>
Prospectus Supplement No. 7 Rule 424(b)(3) Prospectus
to Prospectus dated April 11, 1997 Registration Number 333-22125
Penn Treaty American Corporation
$74,750,000 61/4% Convertible Subordinated Notes Due 2003
2,628,340 shares of Common Stock
This Prospectus Supplement supplements information contained in that
certain Prospectus of the Company dated April 11, 1997, as supplemented by
Prospectus Supplement No. 1 dated May 6, 1997, Prospectus Supplement No. 2 dated
June 11, 1997, Prospectus Supplement No. 3 dated July 21, 1997, Prospectus
Supplement No. 4 dated August 15, 1997, Prospectus Supplement No. 5 dated
November 10, 1997 and Prospectus No. 6 dated November 21, 1997 (collectively,
the "Prospectus") relating to the potential sale from time to time of up to
$74,750,000 aggregate principal amount of Notes and the Common Stock issuable
upon conversion thereof by the Selling Securityholders. This Prospectus
Supplement is not complete without, and may not be delivered or utilized except
in connection with, the Prospectus, including any amendments or supplements
thereto. Capitalized terms used herein but not defined have the meanings
assigned to such terms in the Prospectus.
The following table supplements the information set forth in the Prospectus
under the caption "Selling Securityholders" with respect to the Selling
Securityholders, the respective principal amounts of Notes beneficially owned by
such Selling Securityholders and that may be sold pursuant to the Prospectus, as
amended or supplemented:
<TABLE>
Principal
Amount
of Notes Number of
Beneficially Conversion
Owned and Percent of Shares
That May Outstanding That May
Name (1) Be Sold Notes Be Sold (2)
- -------- ------------ ----------- -----------
<S> <C> <C> <C>
Bear Stearns & Co., Inc. (15) $ 8,665,000 11.59% 304,676
- ------------------
</TABLE>
(1) The information set forth herein is as of March 6, 1998 and will be updated
as required. Certain of the holders share investment power with their
respective investment advisors.
(2) Assumes conversion of the full amount of Notes held by such holder at the
initial rate of $28.44 in principal amount of Notes per share of Common
Stock.
(15) The amount listed includes an additional $4,000,000 principal amount of
Notes beneficially owned by Bear Stearns & Co., Inc. ("Bear Stearns"). Bear
Stearns, as principal, purchased an aggregate of $4,000,000 principal
amount of Notes on March 6, 1998. Bear Stearns has sold or will resell the
Notes it beneficially owns in the manner described under "Plan of
Distribution." Any compensation in the form of discounts, fees or
commissions and any profits on the sales of such Notes may be deemed
underwriting discounts or commissions.
The date of this Prospectus Supplement is March 10, 1998
