BioSpace.com

Biotech and Pharmaceutical
News & Jobs
Search the Site
 
   
Biotechnology and Pharmaceutical Channel Medical Device and Diagnostics Channel Clinical Research Channel BioSpace Collaborative    Job Seekers:  Register | Login          Employers:  Register | Login  

NEWSLETTERS
Free Newsletters
Archive
My Subscriptions

NEWS
News by Subject
News by Disease
News by Date
PLoS
Search News
Post Your News
JoVE

CAREER NETWORK
Job Seeker Login
Most Recent Jobs
Browse Biotech Jobs
Search Jobs
Post Resume
Career Fairs
Career Resources
For Employers

HOTBEDS
Regional News
US & Canada
  Biotech Bay
  Biotech Beach
  Genetown
  Pharm Country
  BioCapital
  BioMidwest
  Bio NC
  BioForest
  Southern Pharm
  BioCanada East
  US Device
Europe
Asia

DIVERSITY

INVESTOR
Market Summary
News
IPOs

PROFILES
Company Profiles

START UPS
Companies
Events

INTELLIGENCE
Research Store

INDUSTRY EVENTS
Biotech Events
Post an Event
RESOURCES
Real Estate
Business Opportunities

 News | News By Subject | News by Disease News By Date | Search News
eNewsletter Signup
Miles
Km80.5

   

Cubist Pharmaceuticals, Inc. (CBST) Issues $800 Million of Convertible Senior Notes


9/11/2013 7:06:12 AM

free biotech news Get the latest biotech news where you want it. Sign up for the free GenePool newsletter today!

Cubist Pharmaceuticals Issues $800 Million of Convertible Senior Notes

LEXINGTON, Mass.--(BUSINESS WIRE)--Cubist Pharmaceuticals, Inc. (NASDAQ: CBST) today announced the closing of its previously announced offering of $800 million aggregate principal amount of convertible senior unsecured notes in two series, with one series maturing on September 1, 2018 (the 2018 notes) and the other series maturing on September 1, 2020 (the 2020 notes and together with the 2018 notes, the Notes). Cubist issued $350 million aggregate principal amount of 2018 Notes, which included $50 million aggregate principal amount of 2018 Notes issued pursuant to the exercise of the initial purchasers’ option to purchase additional 2018 Notes. Cubist issued $450 million aggregate principal amount of 2020 Notes, which included $50 million aggregate principal amount of 2020 Notes issued pursuant to the exercise of the initial purchasers’ option to purchase additional 2020 Notes. The Notes were offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Exchange Act of 1933, as amended.

The 2018 Notes bear interest at a rate of 1.125% per year and the 2020 Notes bear interest at a rate of 1.875%, in each case, payable on March 1 and September 1 of each year, beginning on March 1, 2014. The Notes are not redeemable prior to maturity. The Notes are convertible, only during certain periods and subject to certain circumstances, into cash, shares of Cubist’s common stock, or a combination of cash and shares of Cubist’s common stock, at Cubist’s election. The initial conversion rate for each series of Notes is 12.1318 shares of Cubist’s common stock per $1,000 principal amount of the Notes, subject to adjustment in certain circumstances.

In connection with the exercise of the initial purchasers’ option to purchase additional Notes, Cubist also entered into additional privately negotiated convertible note hedge transactions and warrant transactions with the initial purchasers or their respective affiliates in order to reduce the potential dilution with respect to shares of Cubist's common stock upon any conversion of the Notes and/or offset any cash payments Cubist is required to make in excess of the principal amount of converted Notes.

The net proceeds from the offering were approximately $776 million after deducting the initial purchasers’ discounts and commissions, but prior to deducting estimated offering expenses. Cubist used approximately $58 million to fund the cost of the previously announced and the additional convertible note hedge transactions (after such cost was partially offset by proceeds from the previously announced and the additional warrant transactions).

Contacts

Cubist Pharmaceuticals, Inc.

INVESTORS:

Eileen C. McIntyre, 781-860-8533

Vice President, Investor Relations

eileen.mcintyre@cubist.com

or

MEDIA:

Julie DiCarlo, 781-860-8063

Senior Director, Corporate Communications

julie.dicarlo@cubist.com

Help employers find you! Check out all the jobs and post your resume.


Read at BioSpace.com

   

ADD TO DEL.ICIO.US    ADD TO DIGG    ADD TO FURL    ADD TO STUMBLEUPON    ADD TO TECHNORATI FAVORITES