LEXINGTON, Mass.--(BUSINESS WIRE)--June 6, 2006--Cubist Pharmaceuticals, Inc. (Nasdaq: CBST - News) today announced the completion of its offering of $350 million in aggregate principal amount of Convertible Subordinated Notes due June 15, 2013 pursuant to a registration statement filed with the Securities and Exchange Commission. The notes are 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 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.
