JWCA advises Chegg Inc on its $300 million accelerated share repurchase

FEBRUARY 2022 | read press release

J. Wood Capital Advisors acted as financial advisor to Chegg, Inc. (“the “Company”), and led the execution of the Company’s second accelerated share repurchase program

• Assisted the Chegg team with ASR design (plain vanilla vs collar vs capped) and maturity objectives (including final settlement expected to occur in the second quarter of 2022)

• Created a process to achieve the best terms for Chegg:

  • Led an auction process to drive Company-friendly pricing and achieve the largest possible discount

  • Reviewed the documents to ensure company-friendly provisions

• Provided advice, support and analysis during the execution

Results

• The auction process allowed the Company to achieve a meaningful discount at a transaction size of $300mm

• Chegg’s shares outstanding were immediately reduced by ~8.6mm shares, over 6% of their shares outstanding

• This is JWCA’s second advisory assignment for Chegg, having previously advised the Company on its $1,000mm 0% convertible and capped call offering in August 2020