Chegg (NYSE:CHGG) proposes to offer $250M aggregate principal amount of convertible senior unsecured notes due 2023.
The company intends to grant additional $37.5M of notes to the initial purchasers of the notes.
Interest on Notes will be payable semi-annually.
The notes will mature on May 15, 2023.
Net proceeds from the offering will be used to pay the cost of the capped call transactions to manage potential dilution, up to ~$20M to repurchase shares of its common stock and the remainder of the net proceeds for general corporate purposes.
Morgan Stanley, BofA Merrill Lynch and Allen & Company LLC are acting as initial purchasers of the notes.