Cubist Pharmaceuticals (NASDAQ:[[ticker: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.
Author: Ryan McBride
Ryan is an award-winning business journalist who contributes to our life sciences and technology coverage. He was previously a staff writer for Mass High Tech, a Boston business and technology newspaper, where he and his colleagues won a national business journalism award from the Society of American Business Editors and Writers in 2008. In recent years, he has made regular TV appearances on New England Cable News.
Prior to MHT, Ryan covered the life sciences, technology, and energy sectors for Providence Business News. He graduated with honors from the University of Rhode Island in 2001 with a bachelor’s degree in communications. When he’s not chasing down news, Ryan enjoys mountain biking and skiing in his home state of Vermont.
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