Wednesday 23rd of February 2022 05:12:03 AM
Chegg stock climbs ~6% pre-market on $300M accelerated share repurchase deal
- Chegg (NYSE:CHGG) is up ~6% pre-market on announcing an accelerated share repurchase agreement (ASR).
- The edu-tech company entered into an ASR with Bank of America, N.A. to buyback $300M of its common stock. It will pay $300M to the bank to receive an initial delivery of ~8.6M shares by Feb. 25, 2022.
- The final settlement of the agreement is expected to occur by Q222.
- The ASR transaction will be effectuated pursuant to Chegg's previously announced $1B securities repurchase program.
- As of Jan. 31, 2022, $365M remained available for future repurchases under this program and $65M will remain available after completion of the ASR.
- Chegg shares surged on Feb. 08, after the firm delivered Q4 earnings beat