Cubist sells $400M in notes

Cubist Pharmaceuticals Inc. (NASDAQ:CBST) raised $400 million in a bumped-up offering of convertible senior notes due 2017. The notes bear 2.50% interest and convert into stock initially at $29.18, which is a 16% premium to Cubist's close of $25.25 on Monday, before the company proposed to raise up to $250 million. Cubist plans to use part of the proceeds to repurchase about $191 million of its 2.25% convertible subordinated notes due 2013. Goldman Sachs; Morgan Stanley; Citi; and RBC Capital Markets were underwriters. ...