Zoetis Inc. plans to offer $1.75 billion aggregate principal amount of convertible senior notes due 2029 in a private offering to qualified institutional buyers.
The net proceeds are intended to fund capped call transactions, purchase common stock, and for additional repurchases of shares.
Share repurchases will be part of Zoetis' existing $6 billion share repurchase program.
Offering Details
$1.75 billion convertible senior notes due 2029 with an option for an additional $250 million, aimed at qualified institutional buyers.
Use of Proceeds
Funding capped call transactions, purchasing common stock, and repurchasing shares as per the $6 billion program.
Conversion Terms
Notes are senior, unsecured obligations, accruing interest, and maturing on June 15, 2029, with conversion options for cash and/or shares.
- The offering is a strategic move to raise significant capital for corporate activities and shareholder value enhancement.
- Capped call transactions mitigate potential dilution risks and provide flexibility in managing conversion obligations.
Zoetis' convertible senior notes offering reflects a proactive financial strategy to optimize capital structure and support shareholder value through strategic repurchases.