Cubist Prices $400M Notes Offering
Cubist Pharmaceuticals (NASDAQ:CBST), a Lexington, MA-based provider of acute care drugs such as the antibiotic daptomycin (Cubicin), said in a press release on Tuesday night that it has priced a $400 million convertible notes offering. The notes bear an annual interest rate of 2.5 percent and mature on November 1, 2017, and underwriters of the offering have the option to purchase up to $50 million in additional notes. The company plans to use a portion of the proceeds of the offering to repurchase about $191 million in notes that carry a 2.25 annual interest rate and are due June 15, 2013. The rest of the proceeds could be used for a variety of purposes such as investing in its pipeline, general corporate expenses, and acquiring other businesses.