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.

Smoore, Distributors Move to Toss Cannabis Vape Price-Fixing Suit
Smoore, Distributors Move to Toss Cannabis Vape Price-Fixing Suit
Several vape manufacturers and distributors, including Shenzhen Smoore Technology Co. Ltd., Smoore International Holdings, 3Win Corp., Jupiter Research LLC, Canna Brand Solutions, and Greenlane Holdings Inc., have filed motions seeking dismissal of consumer claims in consolidated antitrust litigation in the U.S. District Court for the Northern District of California.
Events
Feb.24
Malaysia’s vape industry flags “policy U-turn” concerns after ban on refillable open-system e-cigarettes
Malaysia’s vape industry flags “policy U-turn” concerns after ban on refillable open-system e-cigarettes
Malaysia’s vape industry has raised concerns over the government’s decision to ban refillable open-system e-cigarettes, describing it as a policy reversal despite earlier regulatory approvals.
Jan.08 by 2FIRSTS.ai
Thai Customs Region 2 seizes 22,800 YOOZ-branded vape pod heads
Thai Customs Region 2 seizes 22,800 YOOZ-branded vape pod heads
Thailand’s Customs Region 2 searched a private logistics company in Mukdahan province and seized 22,800 vape pod heads with no evidence of customs clearance. The seized items weighed 389.50 kg in total and were valued at more than THB 4.5 million (about USD 143,581.90). The photo shows packaging marked “YOOZ”.
Jan.16 by 2FIRSTS.ai
Arizona e-cigarette shops ordered to pay $460,000 for selling tobacco and nicotine products to minors
Arizona e-cigarette shops ordered to pay $460,000 for selling tobacco and nicotine products to minors
Arizona Attorney General Kris Mayes announced Pro Source Supply LLC, Pro Source Vapes LLC, Pro Source CBD LLC, and owner Timothy Kell must pay $460,000 in restitution tied to a lawsuit filed last year alleging illegal sales of tobacco and nicotine products to underage buyers.
Jan.07 by 2FIRSTS.ai
Russia to Start Extrajudicial Blocking of Sites Selling Tobacco and Nicotine Products Online From March 1
Russia to Start Extrajudicial Blocking of Sites Selling Tobacco and Nicotine Products Online From March 1
Russia will introduce an extrajudicial (non-court) blocking mechanism starting March 1, 2026, allowing authorities to block websites selling tobacco and nicotine-containing products online without a court order. State Duma member Anton Nemkin said the change will place offending sites directly onto the prohibited information registry, speeding up enforcement, reducing the court burden, and increasing platform obligations to proactively monitor content.
Jan.29 by 2FIRSTS.ai
FDA PMTA Roundtable: Ongoing Comprehensive Coverage by 2Firsts
FDA PMTA Roundtable: Ongoing Comprehensive Coverage by 2Firsts
Feb.11