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Moog plans sale of stock to raise $73 million for debt reduction

Moog Inc. plans to raise more than $73 million next week by selling additional shares of the Elma aerospace company's stock, officials said Wednesday.

Moog said it will use the proceeds from the sale of 2.5 million new shares of its Class A stock to pay down a portion of its bank debt.

The stock sale, which is expected to take place next Tuesday, will increase the number of Class A shares in circulation by slightly more than 6 percent. The shares are expected to be sold for $31 per share, which is less than the $32.80 price of those shares at the end of trading on Wednesday, when the stock rose by 68 cents.

Moog also could reap an extra $11 million if demand for the new shares is strong and the company is able to sell as many as 375,000 additional shares, the firm said.

Moog's shares have jumped by more than 15 percent since the beginning of the year as its earnings grew by 13 percent during the final three months of 2005. Moog said on Monday that it has agreed to buy Curlin Medical LLC, a California company that makes infusion pumps, in a $75 million deal that will expand its presence in the medical equipment business.

The proceeds of the stock sale will more than cover the $63 million in cash that it will pay for Curlin when the deal closes by the end of March. Moog also will pay an additional $12 million through a 53-week note.

Moog said the acquisition will not change its previous earnings forecast, with profits expected to range between $1.81 and $1.89 per share, while bumping up its sales forecast slightly to between $1.22 billion and $1.24 billion.

The stock sale will be Moog's third in the last 4 1/4 years. The company sold 4.5 million shares for $9.33 in November 2001 and another 3.94 million shares at $16.89 in September 2003.


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