Pan American Financial LP, which is largely controlled by investor Guillermo “Bill” Bron, plans to sell a $74 million stake in Newport Beach-based United PanAm Financial Corp., the company said Thursday.
Bron is chairman of United PanAm, which makes and buys auto loans for borrowers with imperfect credit.
Pan American plans to sell 3 million shares of common stock for sale at $24.65 a share. The buyer wasn’t disclosed.
Bron’s stake in United PanAm is roughly 62% prior to the stock sale’s closing, which is expected to close early next week. He is set to have slightly less than 50% following the stock sale, according to Garland Koch, United PanAm’s chief financial officer.
The shares to be sold are owned by 26 out of 35 limited partners with Pan American, which is being liquidated, according to a filing with the Securities and Exchange Commission.
In June 2004, Bron’s Pan American withdrew an offering to sell more than 2 million shares because the timing wasn’t right given a major restructuring of the company at the time, Koch said.
JMP Securities LLC is serving as the lead managing underwrite of the offering with Jefferies & Co. Inc. acting as co-manager.
The underwriters have an option to buy another 450,000 shares to cover any additional interest in the deal.
Shares of United PanAm closed at $26.13, up 3.38%, on Thursday.
