LEXINGTON, Mass.--(BUSINESS WIRE)--June 5, 2006--Cubist Pharmaceuticals, Inc. (Nasdaq: CBST - News) today announced that the underwriters have exercised in full their option to purchase an additional $25 million aggregate principal amount of the company's 2.25% Convertible Subordinated Notes due 2013 in connection with the company's previously announced offering of notes pursuant to a registration statement filed with the Securities and Exchange Commission. The exercise of the option brings the total offering size to $350 million aggregate principal amount of notes. The notes will be convertible into shares of Cubist's common stock at an initial conversion rate of 32.4981 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $30.77 per share. The notes will bear interest at an annual rate of 2.25%. The notes will mature on June 15, 2013. The notes may not be redeemed prior to June 20, 2011 and may thereafter be redeemed by Cubist at par if the closing sale price of Cubist's common stock for at least 20 trading days in any 30 consecutive trading day period exceeds 150% of the conversion price. The transaction is expected to close on June 6, 2006. The closing is subject to customary closing conditions.
