Cubist Pharmaceuticals says greenshoe exercised, raising convertibles to $165 million

New York, Dec. 24 - Cubist Pharmaceuticals said the underwriters of its recent offering of 5.5% convertible subordinated notes due 2008 exercised the over-allotment option, raising the size of the offering to $165 million.

The Lexington, Mass. pharmaceutical company originally sold $125 million of the notes after the market closed on Oct. 22. The Rule 144A deal, via lead manager Robertson Stephens, was priced to yield 5.5% with an initial conversion premium of 10%.

Closing of the $40 million greenshoe took place Monday.

Proceeds from the convertibles will be used for clinical trials and commercialization of Cubist's investigational antibiotic Cidecin, its oral ceftriaxone pre-clinical program, the oral daptomycin clinical research program, the lipopeptide drug discovery program, continued development and use of the natural products, VITA functional genomics and ChemInformatics technologies, and for working capital and general corporate purposes.

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