Chegg Announces $150 Mln Accelerated Share Repurchase; Stock Up In Pre-market

(RTTNews) - Chegg, Inc. (CHGG), a learning platform, Wednesday announced that it has entered into an accelerated share repurchase agreement or ASR with Morgan Stanley Bank, National Association for $150 million worth of its common stock.

Under the ASR agreement, Chegg will initially pay $150 million to Morgan Stanley Bank, National Association, and receive a delivery of around 13.5 million shares of its common stock by November 15.

The company said that the final number of shares to be repurchased will be based on the volume-weighted average price of Chegg's common stock during the term of the ASR.

The ASR transaction will be executed following Chegg's previously announced $2.2 billion securities repurchase program. As of October 31, the remaining available shares were $153.7 million for future repurchases under this program and $3.7 million will remain available after completion of the ASR.

The final settlement of the ASR is expected to occur in the second quarter of 2024.

In pre-market activity, Chegg shares are trading at $9.10, up 2.36% on the New York Stock Exchange