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.

West Virginia Governor Signs Bill Directing USD 2.9 Million From Juul Settlement to Youth Tobacco Prevention
West Virginia Governor Signs Bill Directing USD 2.9 Million From Juul Settlement to Youth Tobacco Prevention
The American Cancer Society Cancer Action Network said West Virginia Governor Patrick Morrisey has signed House Bill 5691 into law, directing USD 2.9 million from the Juul settlement to youth tobacco prevention and programs that help people quit. The bill is a supplemental appropriation measure, and the Legislature’s bill history shows it passed the House on March 11, passed the Senate on March 13 and was sent to the governor on March 18.
Mar.20 by 2FIRSTS.ai
Reynolds American launches U.S. investment plan: to invest $3.2 billion to expand capacity and advance a shift toward smokeless products
Reynolds American launches U.S. investment plan: to invest $3.2 billion to expand capacity and advance a shift toward smokeless products
Reynolds American says it will invest more than $3.2 billion across its U.S. operations by 2030. The investment began in 2024 and is expected to support more than 2,000 direct and indirect jobs. The company says the plan covers modernization and expansion of manufacturing facilities, scaling innovation and production, supply-chain initiatives and employee training, and also references its R&D spending and related site footprint.
Mar.06 by 2FIRSTS.ai
VCU Signs Letter of Intent to Buy Altria Building for USD 150 Million, Pending State Approval
VCU Signs Letter of Intent to Buy Altria Building for USD 150 Million, Pending State Approval
Virginia Commonwealth University has signed a letter of intent to acquire Altria Group’s 450,000-square-foot building in downtown Richmond for USD 150 million, but the deal still depends on approval from the General Assembly. The university said the facility would support expansion of the Massey Comprehensive Cancer Center and help grow enrollment in its new School of Public Health and School of Pharmacy. VCU also said constructing a comparable facility would cost about USD 715 million.
Mar.13 by 2FIRSTS.ai
BAT Japan to set up a VELO special booth at an outdoor culture market, showcasing a product launched on Feb. 2
BAT Japan to set up a VELO special booth at an outdoor culture market, showcasing a product launched on Feb. 2
BAT Japan announced it will support and sponsor the outdoor culture market “DIGGIN DEEP 2026 DAIKANYAMA,” held on March 7 and 8, 2026 at Daikanyama T-SITE, and will set up a special booth for the oral tobacco brand VELO at the venue. The booth will feature product displays and trial experiences, including the new product Velo Smooth Peppermint Medium, which went on sale on Feb. 2.
Mar.05 by 2FIRSTS.ai
Poland Seizes 223,688 Disposable Vapes Without Required Excise Marks
Poland Seizes 223,688 Disposable Vapes Without Required Excise Marks
Poland’s Customs and Tax Service in Łódź carried out an inspection at a property near Zgierz and seized 223,688 disposable e-cigarettes without the required excise markings.
Apr.07 by 2FIRSTS.ai
Product | Vaporless Mode + Transparent Display Screen: Kanger Launches Subox Mix 50K in the U.S.
Product | Vaporless Mode + Transparent Display Screen: Kanger Launches Subox Mix 50K in the U.S.
E-cigarette brand Kanger has recently launched its new e-cigarette, the Subox Mix 50K, across multiple online channels in the United States. The product features a “vaporless mode” and a transparent digital display design, supporting switching between approximately 25K vapor puffs and 25K vaporless puffs, for a total of 50,000 puffs, while displaying battery level and mode status in the transparent pod section.
Apr.13 by 2FIRSTS.ai