Pricing Supplement No. 1 Dated December 8, 1998 (To Prospectus dated October 13, 1998 and Prospectus Supplement dated October 13, 1998) Filed pursuant to Rule 424(b)(3) File No. 333-64787 CABOT CORPORATION Series B Medium-Term Notes - Fixed Rate - --------------------------------------------------------------------------- Principal Amount: $40,000,000 Interest Rate: 6.07% Issue Price: 100% Agent's Discount Commission: 0.25% Original Issue Date: December 11, 1998 Stated Maturity Date: December 11, 2000 Net Proceeds to Issuer: 99.75% - --------------------------------------------------------------------------- Interest Payment Dates: June 15 and December 15 Initial Interest Payment Date: June 15, 1999 Redemption: /X/ The Notes cannot be redeemed prior to the Stated Maturity Date. / / The Notes may be redeemed prior to the Stated Maturity Date. Initial Redemption Date: Initial Redemption Percentage: Annual Redemption Percentage Reduction: __% until Redemption percentage is 100% of the principal amount. Optional Repayment: /X/ The Notes cannot be repaid prior to the Stated Maturity Date. / / The Notes can be repaid prior to the Stated Maturity Date at the option of the Holder of the Notes. Optional Repayment Dates: Repayment Price: __% Currency: Specified Currency: U.S. Dollars (If other than U.S. Dollars, see attached) Minimum Denominations: (Applicable only if Specified Currency is other than U.S. Dollars) Original Issue Discount ("OID"): Yes / / No /X/ Total Amount of OID: Yield to Maturity: Initial Accrual Period: Form: /X/ Book-Entry / / Certificated Agent: /X/ Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incororated /X/ Goldman, Sachs & Co. /X/ J.P. Morgan Securities Inc. / / Other: Agent(s) acting in the capacity as indicated below: /X/ Agent / / Principal If as principal: / / The Notes are being offered at varying prices related to prevailing market prices at the time of resale. / / The Notes are being offered at a fixed initial public offering price of 100% of Principal Amount. If as Agent(s): /X/ The Notes are being offered at a fixed initial public offering price of 100% of Principal Amount. Exchange Rate Agent: N/A Other Provisions: None.