** Animal healthcare firm Zoetis' ZTS.N shares down 0.6% at $118 before the bell as it seeks capital to buy back stock

** Parsippany, New Jersey-based ZTS announces private offering of $1.75 bln convertible notes due June 2029

** It intends to use net offering proceeds to repurchase common stock and to fund cost of capped calls, derivative transactions employed to help mitigate potential dilution

** With ~440.7 mln shares outstanding, ZTS has ~$52 bln market cap

** Co last month trimmed its annual rev forecast on softer demand for its medicines and vaccines for pets and livestock, sending its shares to lowest in over 5 years

** As of Fri close, ZTS shares down 27% YTD and well underperforming ~12% advance in S&P 500 Healthcare .SPXHC and 16% gain in S&P 500 .SPX

** 14 of 20 a nalysts rate shares "strong buy" or "buy", 6 have "hold"; their median PT of $160 down from $197.50 on Sept 15, per LSEG data

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

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