Moog Inc.'s stock sale produced a better payoff for the Elma aerospace company than its executives expected.
The sale raised about $84.5 million for the company, which was $11.5 million more than company officials said they expected to bring in when they announced the offering last week.
The overall proceeds were higher because Moog was able to sell 375,000 shares more than they expected as the offering's underwriters exercised their overallotment option because of strong demand for the stock.
Moog said it will use the proceeds from the sale of 2.875 million new shares of its Class A stock to pay down a portion of its bank debt.
The stock sale increased the number of Class A shares in circulation by slightly more than 6 percent. The shares sold for $31 per share, which is less than the $33.49 closing price of those shares at the end of trading on Wednesday, when the stock rose by 87 cents.
Moog's shares have jumped by 18 percent since the beginning of the year as its earnings grew by 13 percent during the final three months of 2005. Moog last week 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 Moog will need to 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.