JWCA advises Chegg on the repurchase of $500mm convertible notes for cash at meaningful discount to par

AUGUST 2022 | read press release

In August 2022, JWCA advised Chegg (“CHGG” or the “Company”) on the repurchase of $500mm of its 2026 convertible. Chegg wanted to opportunistically repurchase their notes at a meaningful discount to par to manage their liability and capital structure.

Chegg’s objectives included:

• De-lever: retire the convertible to lower debt balance

• Minimize transaction and friction costs; execute as efficiently as possible

• Save meaningful amount of cash at maturity by retiring existing convertible below par today

JWCA acted as Repurchase Agent for the transaction and provided analysis and advice around:

• Tactics around investor targeting and execution method

• Investor outreach, negotiation, and execution of repurchases

Results

• The Company executed a successful liability management transaction for its zero-coupon convertible notes due 2026:

  • Repurchased $500mm of their convertible notes (50% of outstanding) for cash at a meaningful discount to par

  • Successfully managed their convertible note liability