Education company Chegg Inc. CHGG, +1.27% said Friday it has entered a new $150 million accelerated share repurchase agreement with JP Morgan and National Association. Under the terms of the deal, Chegg will make an initial payment of $150 million to the two parties and receive an initial delivery of about 7.6 million shares by Feb . 24. 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, minus a discount. The final settlement is expected by the second quarter. The stock was up about 1% premarket, but has fallen 49% in the last 12 months, while the S&P 500 SPX, -1.05% has fallen 6%.
This article was originally published by Marketwatch.com. Read the original article here.