E-cigarette maker Juul to explore options including financing

Business
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.

Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process
Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process
Imperial Brands said it will phase out its myblu vaping business in the United States, citing prolonged FDA approval timelines for new vape products. The company said it will instead focus on modern oral nicotine products in the U.S., including the expansion of its Zone brand and new flavors. While overall next-generation product revenue continued to grow, revenue from the category in the Americas declined sharply.
May.12
 Former DHS Spokesperson Analyzes CBP’s $175 Million Illegal Vape Seizure
Former DHS Spokesperson Analyzes CBP’s $175 Million Illegal Vape Seizure
The Washington Examiner published an opinion article by Tricia McLaughlin, former Assistant Secretary for Public Affairs and spokesperson at the U.S. Department of Homeland Security, arguing that the Trump administration is strengthening enforcement against illegal vape supply chains through the FDA, CBP, and DHS.
Regulations
May.25
Sesh touts independence, 8VC backing and retail reach as it challenges tobacco-owned pouch brands
Sesh touts independence, 8VC backing and retail reach as it challenges tobacco-owned pouch brands
U.S. nicotine pouch brand Sesh has emphasized its independence from Altria, Philip Morris International and British American Tobacco, along with backing from investors including 8VC, celebrity supporters and a retail footprint of more than 7,500 stores, as it seeks to differentiate itself in a market where major pouch brands are owned by large tobacco companies.
Regulations
Jul.07 by 2Firsts Perspectives
U.S. Convenience Stores Rebalance Backbar as Nicotine Pouches Outpace Cigarettes
U.S. Convenience Stores Rebalance Backbar as Nicotine Pouches Outpace Cigarettes
As cigarette volumes continue to decline, U.S. convenience-store operators are reconfiguring backbar space to accommodate modern oral nicotine products such as nicotine pouches. Industry data show nicotine pouches have become one of the fastest-growing nicotine categories while generating higher margins for retailers.
Jun.12
From myblu to Zone: Imperial Brands Refocuses NGP Strategy in HY26
From myblu to Zone: Imperial Brands Refocuses NGP Strategy in HY26
mperial Brands’ HY26 results point to a more selective NGP transition. The company is using cash flow from traditional tobacco to fund targeted investments in modern oral nicotine, heated tobacco and reusable vaping systems. Its decision to exit the legacy myblu vaping business in the U.S., while expanding Zone nicotine pouches. In Europe, Imperial’s NGP growth is being driven by a multi-category portfolio including blu, Pulze and Zone/Skruf.
Special Report
May.12
Michael Olise’s World Cup Locker-Room Photo Puts Nicotine Pouches in the Sports Business Spotlight
Michael Olise’s World Cup Locker-Room Photo Puts Nicotine Pouches in the Sports Business Spotlight
Several European sports outlets have reported on a suspected nicotine pouch seen in French footballer Michael Olise’s locker photo, bringing football’s long-running “snus” culture back into public view and highlighting brand visibility, product classification and public-health debate around nicotine pouches in sports settings.
News
Jun.25 by 2Firsts Perspectives