** Shares of optical and photonic products maker Lumentum LITE.O fall 3.3% to $128.25 in extended trading

** LITE announces offering of $1.1 billion convertible bonds due 2032 in a private placement

** Proceeds from the offering will be used to repay portion of 0.50% convertible bonds due 2026 and to pay cost of capped calls, the derivative transactions employed to offset dilution

** Stock closed down 0.2% at $132.56 on Tuesday

** LITE has 69.9 million outstanding shares for $9.3 billion market capital, according to data compiled by LSEG

** Fifteen of 19 brokerages rate the stock "buy" or higher and four "hold"; with a median PT of $140

** As of last close, LITE stock up 58% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com))