Chegg announces accelerated share repurchase agreement with Morgan Stanley Bank

Chegg (CHGG) announced that it has entered into an accelerated share repurchase agreement, or ASR, with Morgan Stanley (MS) Bank, National Association, to repurchase $150M of Chegg’s common stock. Under the ASR, Chegg will make an initial payment of $150M to Morgan Stanley Bank, National Association, and will receive an initial delivery of approximately 13.5M shares of its common stock by November 15. 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, less a discount. The final settlement of the ASR is expected to occur by the Q2 of 2024. The ASR transaction will be effectuated pursuant to Chegg’s previously announced $2.2B securities repurchase program. As of October 31, 2023, $153.7M remained available for future repurchases under this program and $3.7M will remain available after completion of the ASR. There is no expiration date for the repurchase program, and it will continue until otherwise suspended, terminated or modified at any time for any reason by our board of directors.