Cigarette maker Juul to explore options including financing


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.

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.

The proceeds would help refinance an existing term loan, which has around $394 million outstanding and matures on the same date, the report added.

Article content
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)

Read full article here.

Reuters – Financial Post – 2022-07-15.

Want More Investigative Content?

Curate RegWatch
Curate RegWatch
In addition to our original coverage, RegWatch curates top stories on issues and impacts arising from the regulation of economic, social and environmental activity in Canada and the U.S.


Please enter your comment!
Please enter your name here


Useful Idiots | Misguided Assumptions Leave Vapers Ignored | RegWatch

Reporting from the Global Forum on Nicotine 2023 in Warsaw, Poland, RegWatch takes a deep dive into the machinations of tobacco control and its...

Vaping Coverage Get it NOW!

Sign Up for Incisive Content!

RegWatch original video is designed to move opinion. Get our videos first and be the first to share.

Your Information will never be shared with any third party