Big biotech, Biotech, Financing

Cubist expands financing round to $800 million offering

Posted on 06 September 2013

Tags: , , ,

Cubist Pharmaceuticals has upped the size of its financing offering of convertible notes to as much at $800 million, including overallotments, to pay for its acquisition of Optimer Pharmaceuticals.

The financing will consist of two series of notes.

One will be a financing offering of $300 million in notes which will bear interest of 1.125 percent per year, and be convertible to shares of stock as of Sept. 1, 2018.

The other financing series will be $400 million worth of notes which will bear interest at a rate of 1.875 percent and are redeemable as of March 1, 2020. In addition, the company says underwriters have the option of buying another $50 million worth of both series of notes.

The initial conversion rate for each financing series is 12.1318 shares per $1,000 principal amount of the notes, or an initial conversion price of $82.43 per share.

That’s about 33 percent higher than Cubist’s stock price as of Tuesday.


View: Current Partnering’s Financing Scorecard – view top life science financing deals by value

View: Current Partnering’s Deal Metrics – the latest deal trend infographics for life science deal making

View: Current Partnering’s Big Pharma Deal Making Scorecard – latest trends in big pharma deal making activity

View: Current Partnering’s Big Biotech Deal Making Scorecard – latest trends in big biotech deal making activity

Signup: Current Partnering Dealmakers Update – weekly newsletter providing the latest life science industry deal news, deal making trends, partnering events – sign up now

Signup: Current Agreements Deals Review – monthly newsletter - reviewing the previous month’s life science deal making – partnering, M&A and financing – sign up now

Subscribe: Current Agreements life sciences partnering, M&A and financing deals database – find out more

Follow us on: LinkedIn Current Partnering | LinkedIn Business Development Network | @Currentpartner on Twitter

Print Friendly, PDF & Email

Leave a Reply