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

Zoetis

16/12/2025 13:37

** 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

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))