Cubist Pharmaceuticals Inc. (Nasdaq: CBST) has announced it will offer up to $250 million aggregate principal amount of its convertible senior notes due 2017. The notes will be convertible into cash, shares of Cubist’s common stock, or a combination, at Cubist’s election. The interest rate, conversion price and certain other terms of the offering are to be determined at the time of pricing. Cubist will grant the underwriters an option to purchase up to an additional $37.5 million aggregate principal amount of notes.
The Lexington-based maker of the blockbuster antibiotic drug Cubicin said it will use part of the proceeds to refinance part of its 2.25 percent convertible subordinated notes, which are due June 15, 2013, and said this would be done through privately negotiated transactions.