ATGE - Adtalem Global announces $150M in ASR additional $300M in open market share repurchase program

Adtalem Global Education (ATGE +5.7%) announced its intent to enter into an accelerated share repurchase agreement to repurchase $150M of its common stock which will be funded with existing cash. The company also plans to deploy ~$770M of its ~$820M in net proceeds from the pending divestiture of the financial services segment to pay down debt; this will lead to annualized interest expense savings of ~$40M. The financial services divestiture is expected to close in Q3 of FY22 by Mar.31, 2022. Besides the authorized program, the company board has authorized open market share repurchases of up to $300M of its common stock over the next 3 years, which would be funded by existing cash and future free cash flow.

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Adtalem Global announces $150M in ASR, additional $300M in open market share repurchase program