Convertibles Calendar: Cubist plans $600 million

September 4

CUBIST PHARMACEUTICALS INC. (Nasdaq: CBST): $600 million of convertible senior notes in five- and seven-year tranches; pricing late Wednesday; 2018 notes talked to yield 1.625%-2.125%; 2020 notes talked to yield 2.125%-2.625%; up 27.5%-32.5%; $50 million greenshoe each; non-callable; joint bookrunners Morgan Stanley & Co. Inc., Barclays, and RBC Capital Markets LLC; Rule 144A; call spread; proceeds mostly to fund previously announced acquisition of Optimer Pharmaceuticals Inc. and to pay for the call spread; remaining proceeds for general corporate purposes; Lexington, Mass.-based biopharmaceutical company.

On The Horizon

ALLY FINANCIAL INC.: U.S. Treasury Department is offering tangible equity units of Ally; concurrent initial public offering of common stock; Ally will not receive proceeds from the sale; timing, talk and deal sizes weren't yet available; bookrunners Citigroup Global Markets Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, Barclays and Deutsche Bank Securities Inc.; shares to be listed on the NYSE under symbol ALLY; bank holding company focused on auto financing based in Detroit.

SOLARCITY CORP. (Nasdaq: SCTY): $100 million of five-year convertible senior notes, downsized from $175 million; registered deal; concurrent borrowed share offering; no talk or timing; to select investors in exchange for non-disclosure agreement; via Goldman Sachs & Co., Credit Suisse Securities (USA) LLC and BofA Merrill Lynch; company is lending up to 2.8 million shares of common stock to Goldman Sachs Financial Markets LP; proceeds for general corporate purposes, including working capital, capital expenditures, potential acquisitions and strategic transactions; San Mateo, Calif., provider of clean distributed energy.

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