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.

#Juul #E-cigarette #E-cigarettes and Tobacco

China Tobacco Regulation Shift：Policy Updates and Market Impact

China Tobacco Regulation Shift：Policy Updates and Market Impact

China Tobacco International HK Warns First-Half Revenue May Fall 25%-30%, Tobacco Leaf and Duty-Free Exposure Highlight Reliance on Traditional Tobacco

China Tobacco International HK Warns First-Half Revenue May Fall 25%-30%, Tobacco Leaf and Duty-Free Exposure Highlight Reliance on Traditional Tobacco

CTIHK expects first-half 2026 revenue to fall 25%-30%, mainly due to lower tobacco leaf imports and delayed cigarette shipments to China’s domestic duty-free market. Its 2025 revenue mix—nearly 90% from tobacco leaf-related businesses and less than 1% from new tobacco products—shows continued exposure to traditional supply chains and trade variables.

Philippine Health Department Pushes Total Vape Ban, With Tobacco-Only Flavor Limit as Alternative

Philippine Health Department Pushes Total Vape Ban, With Tobacco-Only Flavor Limit as Alternative

The Philippine Department of Health said it is pushing for a total ban on vape products. If a full ban is not feasible, DOH officer-in-charge Director Dr. Dominic Maddumba said vape products should at least be limited to plain tobacco flavors to reduce their appeal to minors.

May.06 by 2FIRSTS.ai

Reuters: Shopify May Ban All Vape Sales This Week Amid Illegal Market Crackdown

Reuters: Shopify May Ban All Vape Sales This Week Amid Illegal Market Crackdown

Reuters reported that Shopify may ban all vape products from its platform as soon as this week, signaling that U.S. enforcement against the illegal vape market is expanding from retailers and importers to e-commerce platforms and payment networks.

Jun.23 by 2Firsts Perspectives

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.

U.S. FDA: Youth E-Cigarette Prevention Campaign Prevented About 444,000 Initiations and Reduced Illegal Vape Sales

U.S. FDA: Youth E-Cigarette Prevention Campaign Prevented About 444,000 Initiations and Reduced Illegal Vape Sales

The U.S. Food and Drug Administration (FDA) said its youth e-cigarette prevention campaign, “The Real Cost,” prevented about 444,000 U.S. youth from starting e-cigarette use between 2023 and 2024 and blocked more than $42 million in unauthorized e-cigarette sales that would have been used by youth.

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.

Related Topics

News

Related Read

China Tobacco International HK Warns First-Half Revenue May Fall 25%-30%, Tobacco Leaf and Duty-Free Exposure Highlight Reliance on Traditional Tobacco

China Tobacco International HK Warns First-Half Revenue May Fall 25%-30%, Tobacco Leaf and Duty-Free Exposure Highlight Reliance on Traditional Tobacco

Philippine Health Department Pushes Total Vape Ban, With Tobacco-Only Flavor Limit as Alternative

Philippine Health Department Pushes Total Vape Ban, With Tobacco-Only Flavor Limit as Alternative

Reuters: Shopify May Ban All Vape Sales This Week Amid Illegal Market Crackdown

Reuters: Shopify May Ban All Vape Sales This Week Amid Illegal Market Crackdown

2Firsts Perspectives

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

U.S. FDA: Youth E-Cigarette Prevention Campaign Prevented About 444,000 Initiations and Reduced Illegal Vape Sales

U.S. FDA: Youth E-Cigarette Prevention Campaign Prevented About 444,000 Initiations and Reduced Illegal Vape Sales

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