Cubist raises $700 million in note deal
Cubist Pharmaceuticals Inc. (NASDAQ:CBST) raised $700 million through the sale of convertible senior unsecured notes to institutional investors to fund its acquisition of infectious disease company Optimer Pharmaceuticals Inc. (NASDAQ:OPTR). Cubist sold $300 million in 1.125% notes maturing Sept. 1, 2018, and $400 million in 1.875% notes maturing Sept. 1, 2020. Both sets of notes initially convert at $82.43, which is a 28% premium to Cubist's close of $64.46 on Tuesday, before the company proposed to raise $600 million in the notes offering.
Last month, Cubist announced plans to acquire partner Optimer as well as fellow infectious disease company Trius Therapeutics Inc. (NASDAQ:TSRX) in cash and contingent value right (CVR) deals potentially worth up to $1.6 billion in total. Both deals are slated to close this year (see BioCentury, Aug. 8). ...