Chegg hits 3-month high after convertible notes buyback deal
25/11/2024 19:19
** Shares of online learning platform Chegg Inc CHGG.N rise
14% to $2.29, highest since Aug 27, after convertible notes
buyback deal
** Santa Clara, California-based firm early Mon said entered
into individual, privately negotiated repurchase agreements with
some holders of its outstanding 0% convertible notes due 2026
** Co said it's repurchasing ~$116.6 mln of the notes for
cash price of ~$96.2 mln
** Following closing of transactions, ~$127.9 mln of the
notes will remain outstanding and ~$207.5 mln will remain
available under previously announced securities buy back program
** Even with advance on Mon, CHGG shares have lost 80% YTD
and are well off their all-time high of about $115 hit in early
2021
** In Jun, Dan Rosensweig stepped down as CEO after 14 years in
the role and co veteran Nathan Schultz took the reins
** Chegg subsequently announced job cuts and restructuring plans
as it continues to grapple with loss of subscribers to ChatGPT
and disruption to its business due to generative artificial
intelligence (AI)
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))