Universal American To Repurchase 6 Mln Shares From Capital Z Partners

(RTTNews) - Medicare Advantage products provider Universal American Corp. (UAM) Monday said it has entered into a definitive agreement to repurchase 6 million shares of its common stock directly from funds associated with Capital Z Partners Management, LLC.

The aggregate purchase price for the shares is $36.18 million at a price per share of $6.03. The company will use cash on hand to fund the share repurchase.

In addition, Richard Barasch, the company's Chairman and Chief Executive Officer, will purchase 330,000 shares for about $2 million, and Robert Waegelein, the company's President and Chief Financial Officer, will purchase 50,000 shares for around $300,000, following separate agreements with the Capital Z Investors.

The Capital Z Investors also entered into separate definitive agreements with funds affiliated with Deerfield Management, Foresite Capital and Broadfin Capital to sell shares at the purchase price.