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.

South Korea Expands Tobacco Harmful Components Testing System to Cover Synthetic Nicotine Liquid Vapes
South Korea Expands Tobacco Harmful Components Testing System to Cover Synthetic Nicotine Liquid Vapes
South Korea’s Ministry of Food and Drug Safety said on April 17 that it has additionally designated the International Characterization Research Institute as a tobacco harmful components testing body under the Act on the Management of Tobacco Harmfulness. The institute has research experience in analyzing harmful components in liquid e-cigarettes and has obtained recognition for tobacco-sector ISO 17025 requirements.
Apr.17 by 2FIRSTS.ai
KT&G Launches “Miix Cigar Collection” for lil Hybrid at Convenience Stores Nationwide
KT&G Launches “Miix Cigar Collection” for lil Hybrid at Convenience Stores Nationwide
KT&G said on April 15 that it will launch “Miix Cigar Collection,” a dedicated stick for its lil Hybrid heated tobacco product, at convenience stores nationwide in South Korea. The company said the product is the first in the Miix series to apply a “Balance Filter” with internal space in the filter and contains 18% cigar leaf to deliver cigar flavor. With the new launch, the Miix lineup for lil Hybrid will expand to 16 products.
Apr.15 by 2FIRSTS.ai
BAT Shares Surge Nearly 6% as FDA Policy Shift Eases Pressure on Vuse and Velo
BAT Shares Surge Nearly 6% as FDA Policy Shift Eases Pressure on Vuse and Velo
British American Tobacco (BAT) shares rose sharply on May 12 after the U.S. Food and Drug Administration signaled it would deprioritize enforcement against certain unauthorized e-cigarette and nicotine pouch products with accepted premarket applications. Investors viewed the move as favoring established players such as BAT’s Vuse and Velo brands.
BAT
May.13
Italy Formally Submits Detailed Opinion to EU Obstructing Ireland's Disposable Vape Ban
Italy Formally Submits Detailed Opinion to EU Obstructing Ireland's Disposable Vape Ban
Italy's Ministry of Enterprises and Made in Italy has submitted a detailed opinion against Ireland's proposed "Public Health (Single Use Vapes) Bill 2025." Italy argued that the comprehensive ban on disposable vapes lacks scientific evidence, violates the EU principle of the free movement of goods, and conflicts with the existing Tobacco Products Directive.
Apr.10 by 2FIRSTS.ai
AIR Romania Manufacturing Facility Expected to Begin Operations in Q1 2027
AIR Romania Manufacturing Facility Expected to Begin Operations in Q1 2027
AIR Limited announced on May 7, 2026, that it plans to open a new manufacturing facility of approximately 70,000 square feet in Stefanesti, Bucharest North, Romania. The facility is expected to begin operations by the first quarter of 2027. AIR said that once fully operational, the facility is expected to support more than 150 jobs and be capable of producing more than 4,000 tons of flavored shisha molasses each year.
May.08 by 2FIRSTS.ai
Serbian Parliament Passes Trade Laws Banning Sales of E-Cigarettes and Nicotine Products to Minors
Serbian Parliament Passes Trade Laws Banning Sales of E-Cigarettes and Nicotine Products to Minors
Serbia’s parliament has adopted a package of trade laws aimed at increasing consumer protection while introducing a range of changes for merchants and online platforms. One of the most important new measures is a ban on the sale of e-cigarettes and other nicotine products to minors, tightening youth protection rules.
Apr.24 by 2FIRSTS.ai