United PanAm Financial Corp to Be Acquired for $7.05 Per Share in Cash

United PanAm Financial Corp. (Pink Sheets: UPFC) today announced that it has signed a definitive merger agreement to be acquired by an entity controlled by Guillermo Bron, Chairman of the Board of Directors of UPFC, and by affiliates of Pine Brook Road Partners, LLC , a private equity firm. Under the terms of the definitive merger agreement, UPFC's shareholders will receive $7.05 per share in cash in exchange for their UPFC shares, valuing all outstanding shares of UPFC's common stock at approximately $110 million. The $7.05 per share price represents a 41% premium to the closing price of UPFC common stock on December 27, 2010, a 39% premium to the average daily closing price of UPFC common stock for the 30 days prior to December 27, 2010 and a 73% premium to the average daily closing price for the 12 months prior to December 27, 2010.