Zoetis extends gains after $1.75 bln convertible bond sale for stock buybacks

Shares of animal healthcare firm Zoetis ZTS.N up 1.2% to $122.44 premarket after securing capital raise for stock buybacks

Parsippany, New Jersey-based ZTS early Tues announced pricing private offering of $1.75 bln convertible notes due June 2029

Initial conversion price set at $148.20, 22.5% above stock's last close of $120.98

ZTS stock rose 2% on Mon after co unveiled the offering

Co intends to use ~$1.3 bln of net offering proceeds to repurchase its stock, which it expects to complete no later than end of Q1 2026

It also plans to use ~$163 mln fund cost of capped calls, and ~$250 mln to buy 2.1 mln shares to facilitate hedging transactions

Initial cap price of $211.72 is 75% above stock's last sale on Mon

Through Mon, ZTS stock down ~26% YTD compared to 13% gain in S&P 500 Healthcare index .SPXHC

14 of 19 a nalysts rate the stock "strong buy" or "buy", 5 rate "hold" and median PT is $160, per LSEG data