Animal Health Firm Zoetis Offers $1.75 Billion Convertible (1)

Zoetis Inc., an animal medicine company, is seeking to raise $1.75 billion in a convertible bond sale.

The Parsippany, New Jersey-based company is offering a 0.25% to 0.75% coupon on the bonds due in 2029, according to people familiar with the matter.

Zoetis is using substantially all of the net proceeds to repurchase shares while some of the cash will be used to fund a capped call transaction which lowers the dilution risk.

Shares climbed 1.9% to $120.92 each on Monday in New York. The stock has still fallen more than 25% this year, markedly lagging a 17% total ...