E-cigarette maker Juul to explore options including financing

Business by Reuters
Jul.18.2022

(Reuters) -Juul Labs Inc said on Friday it is in the early stages of exploring several options including financing alternatives, as the company deals with lawsuits and a probable ban on sales of its e-cigarettes by U.S. health regulators.

 

E-cigarette maker Juul to explore options including financing

Bloomberg News earlier reported, citing sources, that Juul's bankers at Centerview Partners are sounding out investors for a possible $400 million first-lien term loan due August 2023. (https://bloom.bg/3O9qStl)

The proceeds would help refinance an existing term loan, which has around $394 million outstanding and matures on the same date, the report added.

A spokesperson for Juul told Reuters that the company is looking at options to protect its business and to address the "impact of the FDA's now stayed order so we can continue offering our products to adult consumers who have or are looking to transition away from traditional cigarettes."

 

Centerview Partners declined to comment when contacted by Reuters.

 

Bloomberg News in its report said Juul was also considering a new $150 million second-lien term loan, which may have an August 2024 maturity, to help pay down some of the first-lien term loan and to increase liquidity, the report said.

 

Financing proposals for either loan are due July 21, according to the report.

 

Last month, the Food and Drug Administration (FDA) blocked sales of Juul e-cigarettes and said the applications "lacked sufficient evidence" to show that sale of the products would be appropriate for public health.

 

However, Juul appealed the agency's order and earlier this month FDA put on hold its ban saying it would do an additional review of the company's marketing application.

 

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shailesh Kuber)

 

The content excerpted or reproduced in this article comes from a third-party, and the copyright belongs to the original media and author. If any infringement is found, please contact us to delete it. Any entity or individual wishing to forward the information, please contact the author and refrain from forwarding directly from here.

Malaysia Ministry of Health to submit proposal to Cabinet for comprehensive ban on e-cigarettes, measures set to combat smuggling and black market
Malaysia Ministry of Health to submit proposal to Cabinet for comprehensive ban on e-cigarettes, measures set to combat smuggling and black market
Malaysia Ministry of Health to propose full ban on e-cigarettes, citing health and financial burdens; cabinet approval pending.
Oct.08 by 2FIRSTS.ai
UK Launches Call for Evidence to Shape New Tobacco and Vapes Regulations
UK Launches Call for Evidence to Shape New Tobacco and Vapes Regulations
The UK's Department of Health and Social Care (DHSC) has launched an eight-week comprehensive call for evidence to inform new regulations under the forthcoming Tobacco and Vapes Bill, with a deadline of December 3, 2025. The initiative aims to systematically gather evidence on vape flavors, ingredients, nicotine levels, and product design, as well as proposals for an omnichannel retail licensing scheme for tobacco and vapes and a new product registration system.
Nov.04 by 2FIRSTS.ai
Saratov Governor Supports Russian Nationwide Ban on E-Cigarette Sales
Saratov Governor Supports Russian Nationwide Ban on E-Cigarette Sales
Governor of Saratov Oblast, announced on his official Telegram channel that he fully supports a nationwide ban on the sale of e-cigarettes. Busargin noted that while restrictions on such products have long been in place, enforcement remains weak and health experts continue to warn of the risks posed to children. He stressed that economic interests must not outweigh public health and said Saratov is ready to enforce a ban once regional powers are granted.
Nov.17 by 2FIRSTS.ai
BAT Pauses U.S. Launch of Unlicensed Vuse One Vape amid FDA Crackdown — Reuters
BAT Pauses U.S. Launch of Unlicensed Vuse One Vape amid FDA Crackdown — Reuters
British American Tobacco has paused the U.S. pilot launch of its unlicensed Vuse One vape amid intensified FDA enforcement.
Oct.28 by 2FIRSTS.ai
Imperial Brands FY25 Results: NGP Net Revenue Up 13.7%, Americas Surges Nearly 70%
Imperial Brands FY25 Results: NGP Net Revenue Up 13.7%, Americas Surges Nearly 70%
Imperial Brands reported FY25 NGP net revenue of £368 million, up 13.7% at constant currency. Growth in the Americas accelerated sharply, with NGP revenue up 69.8%, driven by the expansion of the modern oral brand Zone. Europe delivered 8.8% growth, supported by blu’s double-digit vapour share across key markets. Adjusted NGP operating losses narrowed to £76 million, putting the category closer to breakeven.
Nov.18 by 2FIRSTS.ai
Australian Federal Police Dismantles WA Illegal Tobacco Network Linked to National Syndicate
Australian Federal Police Dismantles WA Illegal Tobacco Network Linked to National Syndicate
Australian Federal Police (AFP) and Western Australia Police seized more than five tonnes of illicit tobacco products in Perth, including over four million cigarettes, about 50,000 vapes, and nearly 900 kilograms of loose-leaf tobacco. Authorities allege the operation, linked to a national organised crime syndicate, aimed to evade around $8 million in Commonwealth excise and taxes.
Oct.31 by 2FIRSTS.ai